Deep Dive
1. Token Burns & Supply Dynamics (Mixed Impact)
Overview: Over 400 billion LUNC have been burned since 2022, reducing circulating supply by ~15%. September 2025 saw 3.2 billion tokens burned, triggering a 10–20% price spike, but gains faded as adoption lagged. Only 15% of supply is staked, limiting sell pressure but failing to offset weak dApp activity (TVL: $800k).
What this means: Burns create short-term bullish momentum, but sustained price growth requires utility-driven demand. Without ecosystem growth, LUNC risks retesting support at $0.000056 (WEEX).
2. v3.5.0 Network Upgrade (Bullish Catalyst)
Overview: The August 2025 upgrade aims to reactivate the Market Module, improving LUNC-USTC stability and transaction efficiency. Backed by Binance and validators, historical precedent (v3.4.0 triggered a 320% rally) fuels optimism.
What this means: Successful implementation could restore developer confidence and attract liquidity, with analysts targeting $0.00008–$0.00016 if adoption follows (Coingape).
3. Regulatory & Exchange Risks (Bearish Pressure)
Overview: OKX delisted LUNC spot pairs in September 2025, citing liquidity concerns. Meanwhile, Do Kwon’s guilty plea (Aug 2025) for Terra’s 2022 collapse lingers, though LUNC’s community-driven governance limits direct fallout.
What this means: Reduced exchange access dampens retail participation, while ongoing legal scrutiny keeps institutional investors cautious.
Conclusion
LUNC’s path relies on balancing supply reduction with ecosystem revival. The August 2025 upgrade is pivotal, but stagnant TVL and delistings pose headwinds. Can the Terra Classic community leverage burns and upgrades to reignite DeFi activity, or will fading liquidity cement sideways trading? Monitor TVL and exchange relisting signals post-upgrade.