- Luna Classic network is set to re-enable Inter Blockchain Communication, a key milestone for LUNC holders.
- IBC with Cosmos chains is set to boost the utility of Luna Classic (LUNC) tokens for holders.
- Luna Classic price eyes a bullish breakout, the 200-day exponential moving average acts as resistance at the $0.000186 level.
Luna Classic, the native token of the original Terra blockchain is set to re-enable communication and information sharing with Cosmos chains. This is considered a key event in Luna Classic’s development journey as it boosts LUNC’s utility for holders.
Also read: Luna Classic price: Binance burned 6 billion LUNC, triggering massive rally in the altcoin
Luna Classic prepares for re-launch of Inter Blockchain Communication
Luna Classic (LUNC) has announced that the blockchain will re-enable Inter Blockchain Communication (IBC), a protocol that allows sharing messages and trading assets with other blockchains.
@reXxTerraRebels, a member of an independent Terra Classic development group confirmed that IBC will be re-enabled for LUNC. The LUNC community still has to pass some additional governance proposals to upgrade clients, according to reXx.
A reminder that tomorrow IBC channel is being reopened. It will require additional governance proposals for client updates. pic.twitter.com/MWcV7YNr3r— reXx™ (@reXxTerraRebels) December 5, 2022
The code for IBC has gone through preliminary tests and developers are carrying out additional tests and seeking external reviews. Interestingly, the Luna Classic upgrade will be scheduled to occur with no downtime.
Developers sped up the timeline for re-enabling IBC on the Luna Classic network to overlap with the changes in the Cosmos ecosystem. The Cosmos Network is a decentralized network of independent, scalable, and interoperable blockchains. Cosmos chains play a key role in the Terra Classic ecosystem as several apps on the network communicate with and transfer assets across LUNC and Cosmos through IBC.
Terra Classic core developer Edward Kim noted in November that the development team considered it necessary to move up the timeline and launched a proposal to get the IBC channels re-opened by December 5.
This is a key milestone that bears the potential to incentivize utility for Terra Luna Classic (LUNC). Users will be able to transfer value across other Cosmos chains, developers would build and update their projects to accept LUNC and attract the budding Terra Classic community.
Luna Classic will become fully compatible and interoperable with Cosmos, allowing projects building on LUNAv2 to deploy on Terra Classic.
Recovering from Terra’s collapse, and rebuilding
During the $41 billion collapse of Terra’s sister tokens LUNA (later to become LUNC) and algorithmic stablecoin UST, developers cut-off the lines of communication with other blockchains. This measure was taken to protect users from ripple effects of the ecosystem’s collapse.
The LUNC community patiently awaited the re-enabling of IBC and transfer of assets to other blockchains like Cosmos Network. Jacob Gadikian, a senior Cosmos developer informed users in October that the code for re-enabling IBC and supporting the ecosystem was ready.
Luna Classic price eyes recovery, targets the $0.000186 level
Terra’s Luna Classic price remained largely unchanged overnight but as Luna Classic developers plan to re-enable IBC and make LUNC fully interoperable with Cosmos chains, there is renewed enthusiasm in the community.
As seen in the LUNC price chart shared below, the 200-day Exponential Moving Average (EMA) at $0.000186 is acting as resistance for Luna Classic. A rally in LUNC could push the token’s price back up to retest the $0.000186 level.
LUNC/USDT price chart
Noting LUNC price movement with respect to a volatility indicator, Bollinger Bands, LUNC is inching closer to the lower band. This indicates LUNC could soon enter the buy zone for traders to accumulate the token ahead of its breakout as it targets the $0.000186 level. A decline below $0.000171 could invalidate the bullish thesis for Luna Classic.
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