Terra Classic On-Chain Volume Surge While Burn Volume Plunge

Terra classic (LUNC) is seeing no signs of bull run as LUNC price was once again rejected recently at a resistance of $0.000251. The current bearish pattern of Terra Classic has been seen since September which has resulted in a massive sell-off. Though there was a slight bull run recently the bulls couldn’t hold on to that for long which created a bearish trend.

Currently, Terra Classic (LUNC) is selling at $0.000231 with a drop of 7.69% over the last 24hrs. The immediate resistance lies at $0.000250 while the support is positioned at $0.000200 level.

On the other hand, on Oct 19 the Terra community approved the proposal 5234 which will reduce 1.2% tax burn to 0.2%. The proposal also claims to dedicate 10% of tax revenue to developing the network.

Surge In Terra Classic’s On-Chain Volume

Now, following the tax burn reduction, Terra Classic’s on-chain volume has spiked which was confirmed by a Terra influencer, Classy Crypto via twitter post.

The main agenda behind reducing 1.2% tax burn to 0.2% was to find some positive events within the Terra network. Earlier, after the 1.2% tax burn went live in September, on-chain volume had declined.

However, the one who proposed the tax reduction, Duncan Day claims that will have to wait for at least seven days to arrive at the final conclusion.

Gentle reminder that we need to measure this 7-days post tax to give a reasonable assumption that it has increased volume on-chain.
Given that I found 7-days enough to determine burn tax efficacy, it really is only fair to give the same objective viewpoint here. https://t.co/6XOquppVqM
— duncan (@wrapped_dday) October 20, 2022

It is also important to note that along with seeing a rise in volume, the tax reduction proposal aimed to see an effective bur. However, there isn’t any notable effect on the burn mechanism because Changpeng Zhao, Binance CEO had claimed that decreased tax will see more burns. For example, on Oct 18, before tax burn reduction there was a burn of 190 million LUNC. However on Oct 19 after implementation of the proposal, there was only 150 million LUNC burnt. This decline pattern was followed on Oct 20 which saw just 49 million LUNC burn as per LUNC Burner data.

Well, as claimed by Duncan Day the final result of Terra Classic volume increase will be confirmed after seven day.

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Source: https://coinpedia.org/news/terra-classic-on-chain-volume-surge-while-burn-volume-plummet/