The Terra Luna Classic (LUNC) community is considering a proposal that could reignite interconnectivity with the Osmosis protocol, potentially impacting the price of LUNC and its algorithmic stablecoin, USTC.
The proposal, submitted by developer Fragwuerdig, aims to reactivate the Inter-Blockchain Communication (IBC) channel between Terra Luna Classic and Osmosis. This functionality, once restored, would allow seamless transfer of assets between the two chains.
According to LUNC validator Vegas, a critical upgrade to the Osmosis IBC client is necessary for smooth operation. This upgrade would involve transitioning from version 07-tendermint-12 to 07-tendermint-250.
The proposal has garnered overwhelming support from the community, with over 96% of votes cast in favor. The deadline for voting is May 25th, with some dissenting voices urging a “Yes” vote despite minor reservations.
LUNC Staging a Comeback
This potential revival of IBC has fueled speculation of a price increase for LUNC. The community is optimistic that LUNC could surpass the $0.0002 mark on the back of renewed development activity and staking capabilities. However, LUNC’s current price remains stagnant following a modest 3% weekly rise. Trading volume has also dipped slightly in the last 24 hours.
While USTC, the algorithmic stablecoin at the center of the Terra Luna Classic ecosystem’s collapse, has seen a 30% price increase in the past month, its trading volume has dwindled significantly. Despite this, a slight uptick in volume suggests some renewed interest among traders.
The potential reactivation of IBC with Osmosis represents a significant step forward for the Terra Luna Classic community. If successful, it could revitalize the ecosystem and potentially lead to a price increase for LUNC. However, it’s crucial to remember that the cryptocurrency market remains volatile, and any price predictions are inherently uncertain.
Terra Luna Classic (LUNC) is a cryptocurrency born from the ashes of the Terra blockchain collapse in May 2022. Once the native token of Terra, it now operates on a separate chain and holds significantly less value. Despite its fall from grace, the community is actively developing LUNC, including staking capabilities, which some believe could spark a future price recovery.