Binance, the leading crypto exchange by trading volume around the globe, just expanded their Terra Luna Classic (LUNC) community support. On the first day of July, Binance’s executive team blazed 375,565,484 LUNC tokens, eliminating these from circulation to reduce the over-minted supply.
Binance Destroys Big Batch Of LUNC
These 375.56M LUNC coins come from the monthly collected trading fees on the relative pairs. Burning 50% of the garnered fees, Binance took out $20,711.25 out circulation, but there’s still 5.46 trillion Terra Classic tokens out, which significantly contributed towards the embattled altcoin’s downward slope over the past two months.
According to blockchain records, Binance has been the largest contributor towards reducing Terra Luna Classic’s supply since May 2022, when the ecosystem crashed due to massive liquidity crunch on the original issuer’s side. TerraForm Labs went bankrupt last year, giving the Layer-1 chain’s governance to the LUNC community.
LUNC Relies On Community Efforts
And so, the volunteer developers have built a new community-focused site and notified popular crypto price aggregator platforms to update the links. CoinGecko was among the latest ones to do so, but the altcoin, sporting a $300 million capitalization, is far from its shining years despite the gradually reducing supply.
Luna Classic’s price dwindled 32.9% since last year, while the current price range of $0.000055 is just inches away from the 365-day lowest point of $0.000051. That’s a very contrasting story to 2024, when Terra Classic’s (LUNC) price topped $0.00017 and was really close to restoring a $1 billion market capitalization.
On The Flipside
- The 375.56M monthly Terra Luna Classic burns by Binance cannot compete with the exchange’s multi-billion token burns in the previous years.
Why This Matters
Rebuilding of this blockchain revolves around the community, while the high staking rate testifies that long-term holders are expecting a breakthrough for this game-tested altcoin.
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People Also Ask:
Binance removed 375.5 million Terra Luna Classic (LUNC) tokens from circulation to reduce supply. However, LUNC’s price history shows burns don’t always lead to significant price increases.
While burns reduce supply, LUNC’s past burns, like the 49.18 billion in 2024, haven’t consistently driven price gains. Price impact depends on market sentiment and broader crypto trends.
LUNC crashed after the 2022 Terra ecosystem collapse, losing over 99% of its value, and has struggled to recover due to low investor confidence. Burns aim to improve scarcity but haven’t yet reversed long-term bearish trends.
LUNC is highly speculative due to its unstable history, so new investors should be cautious and only risk what they can afford to lose. Always research thoroughly before investing in volatile assets like Luna Classic.
Binance’s ongoing burns, including 50% of trading fees, may continue to reduce LUNC’s supply, potentially aiding long-term value. However, short-term price pumps are uncertain, so keep an eye on market news.
