As an experienced analyst, I believe that the recent surge in Terra Luna Classic (LUNC) staking ratio and the significant token burns by Binance are positive developments for the crypto. The increasing staking ratio is a clear indication of strong community confidence and reduced available supply for trading, which can lead to decreased selling pressure and potential price appreciation. Additionally, the continued support from Binance in burning LUNC tokens has significantly reduced the overall supply, making it an attractive investment for long-term holders.
On X, the Terra Classic Foundation revealed that over 15% of Terra Classic (LUNC) is now being held in staking pools. An impressive milestone was reached as the quantity of staked Terra Luna Classic surpassed 1 trillion tokens. Additionally, noteworthy token burns of LUNC by Binance have fueled increasing enthusiasm about the cryptocurrency’s progression.
Terra Luna Classic Staking Ratio Surges
Based on information from the Terra Classic Foundation’s most recent update, approximately 1.017 trillion LUNC tokens have been deposited as stakes in the network. With the current market price, this substantial reserve of Terra Luna Classic tokens is estimated to be worth around $70.15 million. Notably, the staking ratio has significantly increased to reach a new peak of 15.01%, up from 14.83% just a few days prior.
As a crypto investor, I’ve witnessed Binance, the leading cryptocurrency exchange globally, carrying out its 23rd LUNC token burn on July 1. They incinerated an impressive amount of 1.7 billion tokens that day. To put it into perspective, Binance has now torched approximately 62 billion LUNC tokens in total through this mechanism. This collective effort from the Terra Luna Classic community has surpassed the milestone of 125 billion burned tokens.
As a researcher studying the cryptocurrency market, I’ve noticed that Binance has been notably supportive of Terra Luna Classic since 2022. One of their key initiatives is the monthly LUNC burn mechanism, which helps decrease the overall supply by burning trading fees. The 23rd batch of this burn covered the period from May 31 to June 29 and burned a considerable amount of fees. It’s important to highlight that Binance alone is responsible for over half of the total LUNC burned in the community through these mechanisms.
As a researcher studying the Terra Luna Classic blockchain, I have observed that an uptick in the staking ratio can bring about a positive impact on the token’s market price. A larger staking ratio generally signifies increased community trust and fewer tokens available for trading. Consequently, this situation may result in diminished selling pressure and potentially trigger price growth.
Locking up tokens through staking decreases the number of tokens in circulation, thereby increasing scarcity. Consequently, the demand for LUNC may rise as there are fewer tokens to trade, potentially leading to a price increase. Moreover, an elevated level of staking demonstrates holders’ long-term commitment, which can pique the interest of potential investors.
What’s Next For LUNC Price?
This week, the crypto market experienced downward pressure due to Bitcoin‘s correction in price. Factors contributing to this included significant sell-offs from the Mt. Gox exchange and the German government. Consequently, Bitcoin reached a four-month low of $53,550. Furthermore, the bearish trend extended to the altcoin market, affecting coins such as Terra Luna Classic.
After that, the Terra Luna Classic token’s price dipped beneath its seven-month support threshold. The correction for LUNC started in early March when its value plummeted from $0.00025. By July 5, the price had declined a significant 73.6% to reach $0.0000673. Nevertheless, on Saturday, July 7, there was a notable surge in LUNC’s price, with over 7% growth and a trading value of $0.00006898.
The recent bounce in LUNC‘s price indicates a potential prevention of dipping down to $0.000052. In order to curb the decline, LUNC needs to surpass $0.00007 and maintain that level. With the current market capitalization of $376.43 billion, as well as the decreased token supply due to Binance burns and community staking, Luna Classic’s price may be bolstered.
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2024-07-06 18:27