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Terra’s UST and Luna Classic climb this week, UST gained 470%, heading for further price manipulation?

After the fall of the two most popular crypto-assets on the Terra blockchain, the digital currencies terrausd (UST) and luna classic (LUC) have risen significantly in value in recent days. Over the past seven days, LUNC is up 96.3% and the once-stable currency UST is up 472.4% this week.

Luna Classic and the once stable coin UST are rising significantly against the US dollar.

It is quite well known in the world of digital currencies that some crypto assets never die. This seems to be the case with two notorious crypto-assets: luna classic (LUNC) and terrausd (UST), a former stablecoin sometimes referred to as terraclassicusd (USTC).

LUNC took the name luna classic because Terra’s new token is now called LUNA. UST was once stable and maintained parity at $1 from October 2020 until May 9, 2022. When UST depreciated, it fell below one US penny, and reached a low of 0.006 $ per unit on June 18, 2022.

However, since the low of $0.006 per unit, UST has jumped 617.5% from this range. UST inflated 472.4% this week to hit $0.0926 on June 29. Although the value of UST fell after this rise, it remained within a 24-hour trading range of $0.04217516 to $0.081822 on Thursday, June 30 according to data from Coingecko.

When UST pulled out of the market on May 9, LUNC’s value was already falling, but four days prior, LUNC was trading at $82. The day UST pulled out, LUNC hit a high of $61 per unit, but the next day it was trading at $27 per LUNC.

Since then, LUNC hit an all-time low four days after the landing incident, at $0.000000999967 on May 13. Miraculously, LUNC is not only up 96.3% this week, but also up 10,577% from its all-time low. At the time of writing, LUNC saw a daily trading volume of $545.87 million, while UST recorded $522.60 million in the last 24 hours.

LUNC has a market valuation of approximately $812,399,236 with 6,907,072,876,045 LUNCs outstanding today. There are 10,254,324,366 USTs currently in circulation, giving UST a market valuation of approximately $477.73 million.

UST holders are still using the Anchor protocol because 573,636,728 USTs are blocked in the system. The Terra Station Wallet Anchor Savings Protocol promises an annual percentage yield (APY) of 16.26%.

In addition, statistics from defillama.com indicate that $9.23 million in LUNCs are held on the decentralized finance (defi) risk management marketplace Risk Harbor. The Terra Classic channel and luna classic (LUC) still have a pretty active community if you look at the posts on social media.

Terra Classic still has active validators as well, and just recently a governance proposal was introduced that would give validators a universal 10% minimum commission. A special validator called LUNC DAO said to his 29,000 Twitter followers that the validator was against the 10% minimum commission rate.

At the time of writing, 37.04% voted in favor of the proposal and 24.80% said no to the idea. Meanwhile, the new LUNA 2.0 token has had a lackluster week compared to its digital currency siblings.

LUNA 2.0 is up 7% this week, but the new crypto asset from the Terra Phoenix blockchain is down 76.6% in the past month. Out of more than 13,000 crypto-assets existing today, LUNA 2.0 ranks 124th with a market capitalization of $273 million. The market cap of the once-stable coin UST ($477.73 million), meanwhile, ranks 87th.

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