Binance Announces Support for Terra Classic Upgrade, LUNC Price Continues to Slide

 Key takeaways

• Terra Classic v.2.2 goes live on mainnet, introduces several upgrades to the ecosystem
• Binance announce support of migration, pauses deposits and withdrawals until the upgrade is complete
• LUNC posts positive price action on the hourly time frame but is still struggling to gain traction after its collapse in May 2022

Binance integrates Terra Classic v.2.2.0, will restart deposits and withdrawals once the network has been deemed stable

Terra Classic v.2.2 has introduced several key upgrades to the blockchain ecosystem, including several technical enhancements that will improve smart contract compatibility with the Cosmos SDK and a variety of improvements to the Terra Classic codebase. Among those improvements is a more adaptable fork structure and test scripts for token migration.

Binance has announced its support of Terra Classic’s recent upgrade. It has halted LUNC deposits and withdrawals momentarily and will update the frontend of the exchange once the Terra Classic network has been deemed stable.

Binance users don’t need to do anything in order for the Terra Classic integration to take effect. Binance will handle all the technical aspects on the backend of the platform, and will notify users once LUNC deposits and withdrawals resume.

LUNC 59.7% down YTD: Could a short-term recovery be possible?

Terra Classic (LUNC) has underperformed the rest of the crypto markets during 2023. The token, which was previously a top 10 cryptocurrency by market cap, now finds itself in the midst of a seemingly unstoppable decline. LUNC has fallen 59.7% YTD during a time where the total crypto market cap (TCAP) has climbed more than 34%.

However, the Terra Classic development team continues to optimize the network in a bid to revive the Terra ecosystem. The recent v.2.2 upgrade follows several key moves that are designed to fix hyperinflation for both LUNC and USTC, including an ongoing burn initiative where more than 68 billion LUNC had been burned by July this year.

LUNC finds itself 2.83% up today as news broke about Binance’s plans to integrate the network upgrade. During the same timeframe, the TCAP has risen 3.01% — indicating that LUNC is still lagging behind the rest of the markets despite its ongoing developments.

You can learn more about Terra Classic’s recent project developments in our article, ‘Will LUNC recover?’

Today’s LUNC price chart, via CoinCodex

Bottom line

Terra Classic has retained a large community following despite its disastrous collapse in May 2022. At this time, LUNA had recently formed a new all-time high and investor sentiment was broadly positive. In the wake of the collapse, more than half a trillion dollars were wiped off the blockchain and the algorithmic stablecoin protocol looked destined to flatline.

However, the remaining Terra community members have banded together and have made consistent progress towards regaining some value. This process could be long and drawn out, but Terra Classic certainly still has a pulse.

You can learn more about the collapse of the Terra ecosystem by heading to our article, Why did LUNA crash 99.99%?