Why is the price of Luna Classic (LUNC) going up?

Breaking its downward trend, Terra Luna Classic (LUNC) has attracted major bids at around $0.000226. The coin’s performance over the past few weeks has been dismal ahead of the new governance proposal to reactivate the CBI.

The coin’s unexpected rally could be attributed to the ongoing governance proposal 10880. This is to unfreeze and update the IBC client Tendermint 07-tendermint-71, which references the Cosmoshub.

But what is IBC and why is it important?

Importantly, the IBC protocol facilitates communication and value transfer between different Cosmos chains. When the ecosystem collapsed in May, the Terra Classic network, which was originally a Cosmos channel, had the channels permanently shut down to avoid temporary losses.

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Reactivating the CBI has become vital to accessing blocked cash and increasing the channel’s utility as the network prepares to recover. As developer Edward Kim revealed in September, the Terra Rebels, a separate group of volunteers working on the Terra Classic Channel, contacted Gadikian for this purpose.

Specifically, Gadikian offered to clean up the channel in addition to helping them with the challenge of reactivating the CBI after it was permanently disabled.

According to Venus, a Terra Rebel and Core Team Project Manager, projects on Cosmos channels may choose to incorporate Terra Luna Classic (LUNC) as a payment option once the CBI is reactivated in order to attract its vibrant community. As a result, LUNC’s utility and transaction volume on the channel should increase.

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Another proposal 5234

In addition to the CBI reactivation proposal, Proposition 5234 reduced the burn tax from 1.2% to 0.2% and made the Terra Classic one of the most talked about topics in the industry. As a result of this proposal, billions of LUNC tokens will be taken out of circulation, increasing demand and helping to drive up the token price.

Rumors of a listing?

LUNA Classic earnings have been fueled by reports that the project will be listed on Coinbase on Monday. Although the authenticity of this rumor has yet to be verified.

At the time of writing, LUNC is holding at $0.00025 with a 24-hour trading volume of $600. Over the past 24 hours, Terra Classic has risen over 11%. With a market cap of $1.6 billion, the company is currently ranked 38th in the market.

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