Terra Luna Classic Burn Mechanism Revised By Binance, What’s Next for LUNC?

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As a seasoned analyst with years of experience in the cryptocurrency market, I have to admit that the recent developments at Binance regarding the LUNC burn mechanism have piqued my interest. The frequency and volume of these burns seem to suggest a revision in their strategy, which is intriguing.

Binance, a leading crypto exchange, has repeatedly activated the LUNC burn mechanism this month, fueling discussions among the Terra Luna Classic community. So far, Binance has been responsible for burning 64.47 billion LUNC tokens, a move intended to aid in the recovery of the chain and boost its price.

Has Binance LUNC Burn Mechanism Revised?

It appears that the data for Binance’s LUNC burn suggests a potential adjustment in their burn mechanism, leading to a higher number of monthly token burns. Previously, the exchange had been burning Terra Luna Classic tokens on a monthly basis, specifically on the first day of each month. But this month, the tokens were burned six times.

As a crypto investor, I’ve noticed some intriguing developments with Binance recently regarding Terra Luna Classic. Previously, they slashed spot and margin trading fees by half instead of the usual 100%. Moreover, there was a delay in sending the Terra Luna Classic trading fee burn contributions for several months. However, it seems that this time around, Binance is indeed burning more tokens, which has piqued my curiosity.

In the 25th round of the LUNC burn process, Binance incinerated approximately 1.19 billion LUNC tokens, which equates to a monetary value of around $97,229.23 from trading fees amassed between July 31 and August 29.

Beyond its primary token incineration, the platform has already torched a total of 199,389 LUNC tokens across five distinct transactions so far. Certain members of the Terra Luna Classic community suspect that the method through which the tokens are being burned by the exchange may have undergone modification.

Terra Luna Classic Ecosystem Tokens Jump

LUNC price climbed 3% in the last 24 hours and 7% in a week, with the price currently trading at $0.00008557. The 24-hour high and low are $0.00008188 and $0.00008622, respectively. Moreover, the trading volume has increased by 16% in the past 24 hours, indicating a rise in interest among traders.

Data from Coinglass shows a significant increase of over 5% within the last 24 hours in the LUNC open interest on both Binance and Bybit. This suggests that derivatives traders have been actively purchasing the cryptocurrency.

Over the past day, the USTC price surged by over 2%, currently standing at $0.0177. Additionally, there was a significant 72% jump in trading volume during this timeframe. It appears traders are capitalizing on the dip, as purchases have increased by 9% within the last week.

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2024-09-24 03:31