In a significant development within the cryptocurrency ecosystem, Binance, the world’s largest crypto exchange, has recently executed its 15th batch of Terra Luna Classic (LUNC) token burns, wherein 760 million LUNC tokens were permanently removed from circulation. This latest burn marks a substantial milestone in Binance’s ongoing contribution to the community’s LUNC burn campaign, which aims to reduce the LUNC circulating supply. As a result, the total number of LUNC tokens burned by Binance has now surpassed the impressive 40 billion mark, while the community’s independent efforts have seen over 76 billion LUNC tokens taken out of circulation.
The 15th batch of the LUNC burn mechanism, covering the period from September 30 to October 30, 2023, reflects Binance’s continued commitment to this process. The tokens were sent to a designated burn address, effectively decreasing their availability in the market. Binance’s involvement in these burns is chiefly fueled by trading fees generated from LUNC spot and margin trading pairs.
It is worth noting that the burn rate of LUNC tokens has experienced a notable decline, attributed to factors such as FUD (fear, uncertainty, doubt), decreased developer activity, and a reduction in LUNC trading volumes on the Binance exchange. Despite these challenges, the Terra Luna Classic community has shown remarkable resilience and dedication by independently burning more than 76 billion LUNC tokens. This initiative emerged in response to the Terra-LUNA crisis of 2022, showcasing the community’s strong commitment to preserving the token’s value.
In light of Binance’s reduced burn contribution from 100% to 50% of LUNC spot and margin trading fees, the community is now considering a request for Binance to also initiate a burn of USTC tokens, in addition to LUNC. This potential move aims to further align the interests of both the exchange and the community in optimizing the token’s scarcity and value.
Market Impact: LUNC and USTC Prices Decline
In the wake of a recent market-wide pullback, the Terra Luna Classic ecosystem tokens, LUNC and USTC, have witnessed a decline in value. This decline can be attributed to investors booking profits amid market volatility.
Within the past 24 hours, LUNC’s price experienced a 5% decrease, with the current trading price at $0.000062. The 24-hour price range fluctuated between $0.0000616 and $0.0000657.
Meanwhile, USTC’s price also recorded a 4% decrease over the same period, with the current trading value at $0.011. Nevertheless, there was a slight uptick in trading volume during this time frame.
The cryptocurrency community is keenly monitoring these developments and anticipating potential market dynamics in the wake of the substantial LUNC token burn by Binance.
