The cryptocurrency market witnessed a significant development recently, with Binance, the world’s leading crypto exchange, burning 4.17 billion LUNC.
This move is another step that shows Binance’s commitment to bolstering the Terra Classic ecosystem. It also signifies a milestone in the crypto industry’s evolution, particularly regarding community-driven token burn mechanisms.
Read Also: Terra Classic Votes On a New Step Proposal For LUNC Revival and Security
The recent burn represents one of the largest single-token burn events in the history of Terra Classic. Following the massive incineration, Luncmetrics shows that LUNC’s circulating supply has dropped to 5.82 trillion tokens.
4.6 billion tokens were burned over the past week, and this burn brings the total number of LUNC tokens burned by Binance to over 56 billion. This action aligns with the broader Terra Classic community’s efforts to reduce the circulating supply of the digital asset, potentially leading to price appreciation in the long term.
Binance’s Enduring Commitment to Terra Classic
Following the collapse of the original Terra ecosystem in May 2022, the community rallied behind Terra Classic (LUNC) and TerraUSD Classic (USTC). Binance was a staunch supporter of the revival process from the start, implementing the burn tax in 2022 to help the ecosystem’s revival.
This token burn, which was the 20th iteration of Binance’s LUNC burn initiative specifically targeted trading fees collected between February 29 and March 30, 2024.
Impact on LUNC and USTC Prices
The 4.17 billion LUNC burn coincided with a positive price movement for both LUNC and USTC. LUNC experienced a minor increase. However, the digital asset has declined, showing a 0.48% decline over the last 24 hours, and trading at $0.0001363.
USTC showed a similar trajectory, initially rising but falling to $0.02535. USTC has also declined 0.48% in the past 24 hours. While the long-term price trajectory remains uncertain, this uptick suggests renewed investor interest in LUNC, and many view the decline as a temporary setback.
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Read Also: Terra Classic Proposal To Burn 800 Million USTC For LUNC Revival Rejected. Here’s why
Looking Ahead
The ongoing token-burning efforts by Binance and the Terra Classic community represent a significant undertaking aimed at restoring stability, and potentially driving future growth within the ecosystem.
Although re-pegging USTC to $1 and restoring LUNC to its former price levels seem like a difficult task, the community is working hard to achieve it. With key proposals aimed at recovery and long-term stability, and continued token burns, the recovery might come sooner than many expect.
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