Bitrabo Editorial
Binance, the leading cryptocurrency exchange globally, has completed a massive burning of Terra Classic (LUNC) tokens, demonstrating its continued support for the Terra Classic ecosystem. Despite the reduction in token supply, the price of LUNC and its daily trading volume have notably decreased.
Binance’s Action on LUNC Tokens
On May 23, Binance conducted a separate LUNC burn event from its previous one on May 1. The exchange transferred about 29,828 LUNC tokens to a defunct wallet, incurring a transaction fee of 11.33 LUNC, according to Terra Finder, the LUNC burn tracker.
Monthly, Binance carries out substantial LUNC burns worth thousands of dollars, with the latest on May 1 involving the burning of around 1.4 billion LUNC tokens, valued at approximately $140,000.
Data from ‘LUNC metrics,’ Binance’s LUNC tracker, reveals that the total LUNC burn by Binance has surpassed 59.07 billion LUNC tokens, equivalent to about 51.9% of the total LUNC burned by the Terra Classic community.
Binance initiated the monthly burning cycle after the crash of Terra Luna in 2022, incinerating over 59 billion LUNC tokens through 2,965 transactions. The largest LUNC burn by Binance was recorded on March 2, 2023, totaling 8.84 billion LUNC tokens.
Overall, the Terra Community has burned more than 113.7 billion LUNC tokens, with Binance leading the burn activities to help diminish the overwhelming supply of around 6.79 trillion LUNC tokens.
Challenges Faced by Terra Classic (LUNC) Price
Despite the concerted efforts to reduce the supply of LUNC tokens, the cryptocurrency’s price has experienced a decline of 2.15% in the last 24 hours, failing to reflect the typical price increase associated with a reduced token supply driving demand.
With LUNC facing a significant token supply and a 62.49% drop in daily trading volume, the cryptocurrency has not witnessed notable price surges.
Currently, the cryptocurrency is trading at $0.00011, with the stablecoin TerraClassic USD (USTC) at a price of $0.022, marking a 3.32% decrease in the last 24 hours. USTC’s daily trading volume has also fallen by 56.26%.
These downtrends in the Terra Classic ecosystem post Binance’s recent LUNC token burn indicate a converse bearish effect instead of the anticipated price rebound from the supply reduction.