Frenzy buying in Terra Luna ends; token dips 19% in 24 hours. What to expect ahead

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The frenzy buying in Terra Luna seems to have worn out as the token slipped nearly 19% on Tuesday. Investors booked profits pushing Luna to stumble to 74th rank in the top 100 cryptocurrency list. Last week, Luna made a more than 361% monthly rise due to approval for a 1.2% tax burn proposal of Terra Classic Lunc. However, currently, the token is under pressure. Does this mean, Luna has entered into a volatile zone?

On CoinMarketCap, at the time of writing, Terra Luna is trading at $3.91 down by 18.6% in 24 hours. The token has touched an intraday high and low of $4.86 and $3.85 respectively. Its market cap is currently around $499.5 million. However, the trading volumes picked up by 11.6% in 24 hours and were around $1.56 billion.

Yesterday's change in Luna tokens was lower by 30.5%.

Last week, Luna was the 58th largest cryptocurrency on CoinMarketCap with a market cap of more than $3 billion. Currently, the token dropped 16 places to become the 74th largest crypto.

However, compared to its all-time low of $1.53 recorded on August 29 this year, the token has gained by nearly 167% as of today. Its weekly upside is over 100%.

The rise in Terra tokens comes after the proposal of tax burn in Terra Classic Lunc.

Terra plans a 1.2% tax burn for on-chain transactions of LUNC and USTC on the Terra Classic network. These proposals are being developed to change the tax parameter from its current value of 0 to 0.012 (1.2%). It has received approval for the same. Many cryptocurrency exchanges are supporting the tax burn plan.

According to Terra governance, the 1.2% tax will be applicable on all currency denominations currently available on-chain, including LUNC and USTC.

Terra's 1.2% tax burn goes live on September 20 at the Terra