Terra Classic (LUNC) has experienced persistent declines since the collapse of the network in 2022. These declines have ranged from price to the Total Value Locked (TVL) of the network. And although there are numerous development projects among the community members trying to restore the old glory, the numbers indicate that the likelihood of a recovery is low.
Terra Classic TVL Hits All-Time Low
After the crash of Terra in 2022, the network lost a significant portion of its TVL as investors withdrew their funds and developers moved their decentralized applications and protocols to other networks. Over time, there seemed to be a stable trend, but once again, the network has lost ground against its superior counterparts.
Data from the on-chain tracker DeFiLlama shows that the total Terra Classic (LUNC) TVL stands at $2.11 million on Thursday. This is noteworthy as it is the lowest TVL the network has ever experienced and is far from the over $20 billion TVL that the Terra blockchain had before its tragic collapse.
The majority of its meager TVL is distributed across only two DeFi protocols: Terraswap and Astroport Classic, with $1.07 million and $933,527 TVL, respectively. The highest TVL of Terra in 2023 reached $12 million in April 2023.
Terra’s TVL has now declined by over 83% from its peak in 2023. Similarly, DeFiLlama shows zero decentralized exchange (DEX) trading volume in the network in the past week, indicating that trading activity in the network has come to a halt.
The Path to Recovery for LUNC
In the past year, the Terra community has consistently tried to help the network recover. However, the decline suffered by the cryptocurrency as a result of the crash is not easy, and it is nearly impossible to recover from it.
Considering the fact that the network activities are virtually non-existent, the chances of recovery have become even slimmer. Perhaps the biggest obstacle to its recovery is the fact that the supply of LUNC has grown to over 6 trillion coins. In this context, even a rise to the $1 mark for the token is out of reach unless its supply is significantly reduced.
The price of LUNC is currently struggling and is trading at $0.00007746 at the time of writing this article. The market capitalization currently stands at $450 million, making it the 80th largest cryptocurrency by market capitalization.
In conclusion, Terra Classic (LUNC) has faced continuous declines in its price and TVL since the network collapse in 2022. Despite community efforts to revive the network, the chances of recovery appear to be slim. The low TVL, limited activity, and the significant increase in LUNC supply are some of the biggest challenges the network faces in the path to recovery.
