Terra Classic drops from $778 million to $17 million on this stat

Over the past day, top coins from the crypto market have shown signs of recovery. Bitcoin and Ethereum were up 6% and 10% in value. However, Terra Classic chose to take the opposite path. In the same time frame, the 35th ranked token had lost more than 8% of its value due to capitalization.

Source: Trade View

Lately, the trading interest associated with the token has declined. Data from Messari revealed that the real volume of LUNC had rolled off the cliff in the past two weeks. As illustrated below, the value of the said statistic fluctuated at a level of $778 on Sept. 8, however, as of going to press, it stood at $17 million, indicating the decline in the buy-sell activity of market participants.

Source: Messer

Earlier this week, the Terra community approved a proposal that imposed a 1.2% tax on all on-chain transactions in an effort to revitalize LUNC. The tax burn also applied to all web3 wallets connected to the Classic network. As reported in a previous article, the tax burn will continue until the circulating supply of LUNC reaches 10 billion.

Read more: Luna Classic Tax Burn goes live: everything you need to know

As a result, there is a lot of chatter going on on social platforms around the said topic. Per Santiment, the top 3 trending words on Friday were ‘lunc’, ‘burn’ and ‘terra’. As a result, Terra noticed a spike in social dominance. Building on the same and talking about what to expect in the future, Santiment’s tweet noted,

With the Terra community adopting the 1.2% taxburn initiative for LUNC on-chain transactions, there has been a remarkable increase in discussions about being active on socials today. The trending topic should cause price volatility in the coming weeks.

Source: saint

Furthermore, the curve of the amount of burned LUNC has been in an uptrend for the past week. As of September 22, the tax burn tokens totaled 345.2 million tokens, bringing the daily total token burned to 410.6 million. At the time of going to press on Friday, a total of 31.1 million tokens had already been burned under the tax-burning regime.

Source: Terrarity

As noted above, burn injuries have been ongoing. However, it has not been able to maintain the price of the token. A few hours ago, LUNC noted a brief recovery on the hourly, but it was trading in red again at the time of writing.

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