LUNA 2.0 vs LUNA Classic: Which Proves to Be The Better Choice?

The post LUNA 2.0 vs LUNA Classic: Which Proves to Be The Better Choice? appeared first on Coinpedia — Fintech & Cryptocurreny News Media| Crypto Guide

The community supported a plan to rebuild the project when the Terra network and tokens imploded, leaving many people perplexed by the new identities. Here’s a breakdown of the two Terra blockchains and which tokens are worth investing in.

Terra, a once-billion-dollar digital asset ecosystem, collapsed in May 2022, possibly the biggest token crash in crypto history. Within a week, the price of UST, the world’s largest algorithmic stablecoin, and its twin token LUNA, which was supposed to maintain UST’s price, plummeted to nearly nothing.

UST and LUNA were both among the top ten cryptocurrencies before their collapse. During the turmoil, the Terra blockchain was forced to pause twice. Luna and UST have been down for a month now. During that period, a plan to keep LUNA alive through a bifurcation has emerged. LUNA 2.0 and LUNA Classic were born from the latter.

Many investors who experienced significant losses due to the LUNA disaster have distanced themselves from the endeavor. Nevertheless, as LUNA emerges from the ashes, some pursue redemption and some seek to make a profit. Whatever side you’re on, knowing the difference between LUNA 2.0 and LUNA Classic is critical.

Everything You Need to Know About LUNA 2.0 vs. LUNA Classic

The Terra fork was designed to sustain the network. The fork ensured that the original LUNA, now known as LUNA Classic or LUNC, would continue to exist. However, due to excessive minting to maintain the UST’s peg, the LUNA’s supply was inflated to a circulating circulation of around 6.5 trillion coins. It also led to the development of LUNA 2.0, which has a circulating supply of only 210 million LUNA.

There is no ‘mint and burn’ mechanism in place for LUNA 2.0. Meanwhile, as part of the attempt to avoid future attacks, a proposition is known as ‘Prop 29’ was introduced to restrict the functioning of the Anchor protocol.

Due to its limited circulating supply and increased trading volumes, LUNA 2.0 appears to be more prevalent on paper. For example, in the last 24 hours, it generated $398 million in daily trading volume, while LUNC generated $193.7 million.

Will LUNC’s Trump Card Help it to Sustain?

Since its debut, LUNA 2.0 has lost more than 80% of its value. The LUNC drop in May, on the other hand, provided an opportunity to buy at rock-bottom rates.
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