- Binance’s latest LUNC burn removes 1.5B coins from LUNC circulation.
- Terra Luna Classic’s trading volume significantly dropped since March.
- Analysts measure LUNC’s breakout chances based on a triple bottom.
Terra Luna Classic (LUNC) has received a strong boost from Binance, the leading crypto exchange by trading volume. Ever since Terra’s blockchain experienced a devastating crisis in May 2022, the exchange has taken it upon itself to reduce the overprinted supply of LUNC.
Revitalization Efforts Post-UST Crash
While the collapse has led to both Terra (LUNA) and Terra USD (UST) crumbling to pieces, the blockchain’s original coins were relaunched as Terra Luna Classic and Terra Classic USD (USTC). As TerraForm Labs focused on Terra 2.0 before going bankrupt, the classic Terra tokens were given to the LUNC community.
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As a method of bolstering recovery, Binance’s founder and former CEO Changpeng ‘CZ’ Zhao lent a helping hand and explained that “minting, forking, don’t create value. Buying back, burning does, but it requires funds.” Since then, 21 LUNC burning batches have been conducted.
With the latest Terra Classic burn ceremony on May 1, Binance has destroyed 1.5B tokens. According to on-chain records, this latest burning puts Terra Luna Classic’s remaining supply at 5,799,881,270,168 tokens.
Can LUNC Make It Back to TOP 100?
According to Binance’s burning strategy, the crypto exchange utilizes LUNC’s trading fees in relevant Spot pairs. This initiative inspired stakers and validators to approach other crypto exchanges to set up an all-around LUNC burning policy.
In addition, the community aims to coordinate burns involving USTC, as the depegged algorithmic stablecoin is still trading below two cents. Meanwhile, cryptocurrency chart analysts believe that LUNC’s make-or-break moment underlies the $0.00013 price range.
According to crypto trader Derek, LUNC is attempting to break out from short-term support, depicted in the graph above with three green-colored upward arrows. Breaking past this momentary support line on May 2, 2024, LUNC now trades at $0.0001045, with a 3.4% upswing over the past 24 hours.
The trader believes a stronger bounce back to the $0.00016 level is on the cards if LUNC manages to close the week above $0.000103. Hence, a gradual upward trajectory to reclaim a $1bn market cap could put LUNC back in the TOP 100. In contrast to today’s LUNC outbreak, the altcoin is still 25.5% down over the past 30 days.
On the Flipside
- Binance managed to collect a significantly lower amount of trading fees in the 21st Terra Luna Classic burn ceremony on May 1, 2024.
- To compare, a gargantuan 4.17B LUNC tokens were burnt in March converting to $722.6K as LUNC daily trades hemmed in over $100M per day.
Why This Matters
Despite falling out from the TOP 100 by market cap, Terra Luna Classic’s coordinated rejuvenation efforts continue with assistance from community developers and major crypto exchanges.
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