- Binance’s latest LUNC burn removed 1.5 billion LUNC coins from circulation.
- Terra Luna Classic’s trading volume has decreased significantly since March.
- Analysts gauge LUNC’s breakout potential based on triple bottoms.
Terra Luna Classic (LUNC) has received great response from Binance, the leading cryptocurrency exchange by trading volume. After Terra’s blockchain suffered a massive crisis in May 2022, the exchange took action on its own to reduce the oversupply of LUNC.
Revitalization efforts following UST collapse
While the crash caused the collapse of both Terra (LUNA) and Terra USD (UST), the original coins on the blockchain were relaunched as Terra Luna Classic and Terra Classic USD (USTC). Classic Terra tokens were made available to the LUNC community as TerraForm Labs focused on Terra 2.0 before going bankrupt.
As a way to promote recovery, Binance founder and former CEO Changpeng ‘CZ’ Zhao lends a helping hand, saying, “Minting and forking do not create value. “Repurchase and incineration are the same, but they require funds.” Since then, 21 batches of LUNC burning have been performed.
In its latest Terra Classic burn event held on May 1, Binance burned 1.5 billion tokens. According to on-chain records, this burn brings the remaining supply of Terra Luna Classic to 5,799,881,270,168 tokens.
Can LUNC make it into the TOP 100 again?
According to Binance’s burn strategy, the cryptocurrency exchange utilizes trading fees of LUNC from the relevant spot pairs. This initiative has inspired stakers and validators to approach other cryptocurrency exchanges to set their overall LUNC burn policies.
Additionally, the community aims to coordinate burns associated with USTC, as the depegged algorithmic stablecoin is still trading below 2 cents. Meanwhile, cryptocurrency chart analysts believe that LUNC’s make-or-break moment is the basis for the $0.00013 price range.
According to cryptocurrency trader Derek, LUNC is attempting to break out of short-term support, as shown by the three green upward arrows in the graph above. Having broken the support line at this moment on May 2, 2024, LUNC is currently trading at $0.0001045, up 3.4% in the last 24 hours.
Traders believe that if LUNC closes the week above $0.000103, a stronger bounce to the $0.00016 level is possible. Therefore, a gradual upward trajectory to regain the $1 billion market cap could see LUNC enter the TOP 100 again. Unlike today’s LUNC outbreak, the altcoin is still down 25.5% over the past 30 days.
On the flip side
- Binance collected significantly lower transaction fees at the 21st Terra Luna Classic Burning Ceremony on May 1, 2024.
- For comparison, a whopping 4.17B LUNC tokens were burned in March, converting to $722.6K, as LUNC daily transactions increased by over $100M per day.
Why This Matters
Despite falling out of the top 100 by market capitalization, Terra Luna Classic’s harmonious revitalization efforts continue with the support of community developers and major cryptocurrency exchanges.
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