- USTC decreases to 7.1 billion, reflecting circulation figures with no significant changes.
- Terra Luna community observes trading activity, with USTC volume increasing by 118%.
For the Terra Luna Classic (LUNC) ecosystem, 1.85 billion USTC and 222 million LUNC tokens were recently reclassified within the Luna Foundation Guard’s holdings, causing an immediate price surge in both cryptocurrencies. This adjustment, which saw these tokens removed from the previously reported circulating supply, led to a notable increase in their market value.
The adjustment involved tokens that had been inactive for nearly two years in the Luna Foundation Guard’s wallet address. With this change, the circulating supply of USTC has decreased to 7.1 billion. Cryptocurrency assets such as those held by teams, foundations, treasuries, or in escrow are not typically considered part of the circulating supply.
This classification is based on the criteria that assets which are locked (either by smart contracts or legal contracts), allocated to insiders, or unavailable on the public market do not count towards the circulating supply, according to standards set by CoinMarketCap.
Following the announcement, the price of LUNC jumped over 10%, and USTC rose by 18% within a few hours. However, these gains were short-lived as prices began to normalize once the community digested the news. The initial surge was largely driven by perceived scarcity as the supply was thought to have decreased significantly.
Despite the pullback, LUNC’s price is currently up by 4% over the last 24 hours, trading at $0.0001062, with its 24-hour trading range between $0.0001020 and $0.0001129.
Meanwhile, USTC has seen a 7% increase over the same period, now trading at $0.0235, with its 24-hour price fluctuation ranging from $0.0215 to $0.0251. Additionally, trading volumes for both tokens have spiked, with USTC experiencing a 118% increase in activity.
This recalibration of supply figures for LUNC and USTC underscores the complexities of managing and reporting cryptocurrency assets. While the Terra Luna Classic community had initially hoped for a permanent reduction in supply through a burn of the tokens in the LFG wallet, the adjustment was merely an alignment to accurately reflect these assets’ status as non-circulating.
This event highlights the sensitivity of crypto asset prices to supply changes and the importance of clear communication from managing foundations regarding the status of held tokens.
