- Top crypto asset Bitcoin’s pullback to $42,000 causes a market-wide meltdown.
- Binance ignites the LUNC burning machine with a hefty increase since December.
- LUNC and USTC face double-digit deficits as crypto bears take over the markets.
The crypto giant Binance continues the monthly ritual of burning Terra Luna Classic (LUNC) tokens accumulated from the relevant spot trading pairs during the month. In the inaugural 2024 LUNC burn, Binance set 5.59 billion LUNC tokens ablaze, reducing the remaining circulation to 6.814 trillion Terra Classic coins.
Despite the plunging trading volumes for LUNC and Terra Classic USD (USTC) across crypto exchanges, Binance’s 5.59 billion LUNC burn represents a 1.59B increase from the burning procedure conducted in December 2023. Following the news, prominent Terra Classic community members expressed gratitude for Binance’s contribution to restoring the chain.
LUNC, USTC Fall Victim to Wednesday’s Crypto Meltdown
Despite the 5.59 billion LUNC burn contribution on January 2, 2024, Terra Classic crashed by 17% today, as the leading digital asset, Bitcoin (BTC), quickly fell to retest the $42,000 support levels. For LUNC, this sums up a 52% deficit in the last 30 days. At press time, LUNC trades at $0.00011830, close to exiting the TOP 100 by global market capitalization.
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If the bearish trend persists, LUNC could evaporate all gains achieved during the December rally. Terra Classic, claiming an entrance to the TOP 50 by global market cap, soared to $0.00026 on December 4, 2023, with a $1.53 billion market cap. Terra Classic’s market cap currently stands at $694,523,604.
However, Terra Chain’s native malfunctioning stablecoin Terra Classic USD endured even heavier losses in the last 24 hours, with a steep 18.8% decline. In late 2023, Terra’s USTC made waves in the crypto space with a monumental 300% run after the community’s continuous efforts to re-peg the fallen stablecoin bore fruit, and USTC reclaimed the $0.07 mark for a short while.
On the Flipside
- While Binance is the largest Terra Classic burn contributor, accountable for 52% of total burns, multiple projects on the chain also support the USTC burn initiative.
- Previously, the Terra Classic community requested Binance to perform a USTC burning ceremony with the monthly accumulated fees but had received no response.
Why This Matters
Reducing the supply of cryptocurrency in circulation maintains a coin’s scarcity, making it more attractive for investors to hold as a long-term investment.
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