Terra Classic LUNC/USD, the native token of the blockchain that crashed and burned earlier this year, has been on a tear over the last few weeks.
What Happened: LUNC rallied 460% from $0.000091 on Aug. 8 to $0.000548 on Sept. 8, as per data from Benzinga Pro. The token was up 14% over the last 24 hours, gaining 13% over Bitcoin BTC/USD and 15% over Ethereum ETH/USD.
LUNC also had a massive daily trading volume of $3.8 billion, second only to market leaders BTC and ETH.
See Also: IS TERRA (LUNA) DEAD?
The coin’s price action has largely been attributed to a new community proposal to impose a burn mechanism for LUNC that would remove coins from circulation. The recently approved proposal would burn 1.2% of LUNC supply and re-enable the staking mechanism.
While optimism around the new proposal likely led to some positive price action, open interest data shows that a number of traders are betting that the massive rally will be over soon.
Funding rates for the LUNC/USDT trading pair hit -0.50 on Thursday, implying that short traders are paying long traders to keep their positions open.
Think LUNC burn trade is about to implode — everyone knows what a game of musical chairs is and momentum just broke.
Binance announcement on not burning CEX volumes thins right tail.
5x from lows in these market conditions means elevator down is a high probability. pic.twitter.com/3OlXXRqFTr
— light (@lightcrypto) September 8, 2022
Image and article originally from www.benzinga.com. Read the original article here.