The Terra Classic (LUNC) community is still devoted to revitalizing the asset, and there has been a resurgence of positive feelings in the group lately. One member, Rex “Rexyz” Harrison, has expressed the belief that if LUNC’s market capitalization reaches $6 billion, which is the same as Shiba Inu’s current valuation, and the number of tokens being staked doubles, LUNC has the potential to increase in value by ten times.
Rex and Cryptomane’s Opinion
After comparing Shiba Inu and Terra Classic, a member of the LUNC community known as Cryptomane, who holds influence in the community, shared his thoughts on Twitter about the potential of both assets achieving their common goal of reducing their large supplies. This comparison likely led Rex “Rexyz” Harrison to develop his theory on LUNC’s potential value increase.
Terra Classic currently has a total of 6.8 trillion tokens in circulation. In contrast, Shiba Inu has a significantly larger supply of 589 trillion tokens, more than 86 times greater than that of LUNC. Despite this, both tokens aim to significantly decrease their supplies to bolster their prices.
Terraport, a DeFi platform operating on Terra Classic, plans to use 27% of its treasury to buy and destroy LUNC tokens. The burning process will help reduce the total supply of LUNC tokens in circulation.
Related Reading: Terra Classic Projects Burn Nearly 33M LUNC This Week
On the other hand, Shibarium is a layer-2 solution for the Shiba Inu blockchain. It has announced that it will burn 70% of the base transaction fees it collects by purchasing and eliminating SHIB tokens from circulation.
Cryptomane speculates that LUNC will achieve its supply reduction goal faster than SHIB. The basis for this belief is that LUNC has a significantly lower supply than SHIB.
However, this is not a certain outcome, as the rate at which tokens are burned for both assets will depend on several factors. These factors include the volume of transactions processed by Shibarium and the trading volume of Terraport. Therefore, the actual rate at which the supply of LUNC and SHIB will be reduced remains uncertain and cannot be accurately predicted.
Comparing LUNC and SHIB
Rexyz made a comparison between the market capitalizations of SHIB and LUNC. Rexyz pointed out that the market capitalization of SHIB is significantly higher than that of LUNC, with SHIB’s market capitalization currently standing at $6.09 billion while LUNC’s is at $707 million.
This means that SHIB’s valuation is 86 times greater than LUNC’s. However, despite the difference in market capitalization, the price of SHIB is much lower than that of LUNC. Currently, SHIB is trading at $0.00001033, while LUNC is trading at $0.0001200.
