Binance Completes Another Massive LUNC Burn, Here’s How Much Was Burned

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As a crypto investor with some experience in the Terra Classic (LUNC) ecosystem, I’m both encouraged and concerned by Binance’s latest LUNC burn. On one hand, it’s great to see the world’s largest crypto exchange continuing its support for the Terra Classic community by reducing the token supply. However, the fact that the price of LUNC and its daily trading volume have been falling significantly despite these efforts is disheartening.

The globally leading crypto exchange by trading volume, Binance, has carried out another major burn of Terra Classic (LUNC), contributing to the ecosystem. Despite this significant decrease in supply, both the value of LUNC and its daily trading volume have seen considerable drops.

Binance Burns LUNC Tokens

On May 23rd, Binance performed another LUNC token burn, distinct from the previous one on May 1st. Based on data from LUNC burn tracker Terra Finder, approximately 29,828 LUNC tokens were moved by the exchange to a non-functional wallet, accompanied by a transaction fee of 11.33 LUNC.

Each month’s start sees Binance carrying out a significant LUNC token burning event, worth thousands of dollars. For instance, on May 1st, the exchange burned approximately 1.4 billion LUNC tokens, equivalent to around $140,000 in value, increasing the total burn tally to surpass 57 billion dollars.

The data from Binance’s LUNC tracker, referred to as “LUNC metrics,” indicates that Binance has burned a total of 59.07 billion LUNC tokens. This amount represents roughly 51.9% of all LUNC tokens burned by the Terra Classic community up to this point. Notably, Binance initiated its monthly burning cycle after the crash of Terra Luna in 2022, eliminating over 59 billion LUNC tokens across 2,965 individual transactions.

As an analyst, I’ve discovered that the largest burning of LUNC tokens by Binance occurred on March 2, 2023. This exchange burned a staggering amount of 8.84 billion LUNC tokens, leading to a considerable decrease in the circulating supply of Terra Classic’s tokens.

As a dedicated investor in Terra Classic (LUNC), I’m thrilled to share that collectively, our community has successfully burned over 113.7 billion LUNC tokens. Binance, being an active and committed supporter of the Terra Classic ecosystem, has led the charge in these burns. Their unwavering efforts have significantly reduced the token supply from its staggering original amount of approximately 6.79 trillion LUNC. This collaborative action is a significant step towards enhancing the value and potential of our investment in LUNC.

Terra Classic (LUNC) Price On A Downtrend

Although Binance and the community have made attempts to decrease the circulation supply of LUNC, the cryptocurrency’s value continues to stay low, experiencing a 2.15% drop in the past 24 hours. Typically, reducing a token’s supply drives scarcity, which in turn ignites price growth due to heightened demand for the token.

As an analyst, I’ve observed that despite LUNC having a sizable token pool, there’s been a noteworthy 62.49% reduction in its daily trading volume. Consequently, this decrease in market activity has prevented the cryptocurrency from experiencing any substantial price growth.

Currently, the value of the cryptocurrency is listed as $0.00011 on CoinMarketCap. Furthermore, its stablecoin, TerraClassic USD (USTC), is priced at $0.022, representing a 3.32% decline in value over the last 24 hours. The daily trading volume for USTC has experienced significant drops, amounting to a 56.26% decrease.

As an analyst, I’ve observed some surprising dips in the Terra Classic ecosystem following Binance’s recent LUNC token burn. Contrary to expectations, this burning process, which aims to reduce the total LUNC supply and theoretically boost prices through scarcity, has instead resulted in a bearish trend.

Binance Completes Another Massive LUNC Burn, Here’s How Much Was Burned

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2024-05-25 01:41