Here's why Terra Classic price has soared by 250% in September
Terra Classic (LUNC) has outperformed all top-ranking cryptocurrencies so far in September gaining nearly 100% in the past seven days alone.
The token surged more than 250% month-to-date to reach $0.000594 on Sep. 8, its best level on record. Whereas Bitcoin (BTC), dropped 4%, and Ether (ETH) gained only 3.5% in the same period.
The profits in the Terra Classic market appeared despite its association with the defunct Terra (LUNA) token, a $40 billion project that collapsed in May. Terra Classic is a rebranded version of the same Terra project and thus has been the subject of skepticism from analysts and investors since its debut.
But traders have ignored such warnings in recent weeks, with a flurry of fundamental catalysts influencing them to purchase LUNC.
A new staking service went live on the Terra Classic chain on Aug. 27, serving as the first major cue behind the ongoing LUNC price rally.
According to LuncStaking_Bot, users have staked more than 610 billion LUNC tokens with Terra Classic against its net supply of 6.9 trillion units. In other words, nearly 9% of the total LUNC supply has been removed from circulation.
Supply and staking of LUNCSUPPLYtotal: 6,903,660,538,201STAKEDbonded: 533,102,702,962unbonded: 77,003,374,763STAKING RATIO8.837%(bonded: 7.722%)2022-09-08 17:30 UTC#LUNC
Data from StakingRewards show that staking Terra Classic is returning users with an annualized yield of 37.8%, among the highest payout in the crypto industry.
The higher returns could have played a key role in boosting LUNC demand, prompting the token's price to rise by more than 450% since the staking service launch, as shown in the chart below.
In addition to staking, Terra Classic developers have also introduced a token burning mechanism
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