# NEW

LUNC’s Comeback: Can Binance’s 62 Billion Token Burn Boost Its Rise?

LUNC

KEYTAKEAWAYS

  • Binance's monthly burns of LUNC tokens signal strong support, aiming to boost its market value.
  • Recent increases in LUNC’s market cap highlight renewed investor interest despite broader community skepticism.
  • Future potential hinges on wider exchange adoption of burn policies and the revival of Terra Luna Classic's utility.

CONTENT

How is Binance’s 62 billion LUNC coin burn impacting Terra Luna Classic’s market and potential recovery, amidst varying community support?

 

Terra Luna Classic (LUNC) has recently garnered attention from investors due to a significant token burn initiated by Binance and a notable increase in market capitalization. These monthly burns demonstrate Binance’s ongoing support for LUNC, although they may not necessarily reflect broader community sentiment, which has waned in recent times. Much of the crypto market’s attention has shifted to other projects like JasmyCoin, various memecoins, and major players like BTC, Ethereum, Solana, and XRP, some of which are involved in ETFs.

 

LUNC

(source: CoinMarketCap)

 

>>> Read more:

 

 

FROM LUNA TO LUNC

 

For those who may need a refresher, LUNC emerged from the rebranding of the original LUNA token following the near-collapse of its blockchain in May 2022. The Terra blockchain, now known as Terra Classic, continues to host LUNC, operating on its original protocol designed for facilitating global payments with stablecoins. However, in the wake of the destabilization, the primary stability mechanisms of its associated stablecoin, TerraClassicUSD (USTC), have been deactivated, including all minting and burning functionalities.

 

HOW BINANCE IS SUPPORTING LUNC

 

Binance’s commitment to LUNC is evident through its regular burning events. These burns were initially driven by community support for a 1.2% burn tax on all transactions, both on-chain and off-chain. While the final implementation resulted in only 0.1% of transactions being burned, and currently only 50% of these fees are being burned, this still contributes positively to the ecosystem—especially considering that other exchanges are not participating in similar initiatives.

 

LUNC Burn Statistics

 

LUNC

(source: LUNC Metrics)

 

According to LUNC Metrics, Binance has burned a total of 62 billion Terra Luna Classic tokens, accounting for 49% of all coins burned. They’ve also burned 4.38 million USTC, which, though less impactful, still contributes to the overall reduction in supply. Looking at recent figures, Binance burned 1.7 billion coins last week and 1.3 billion last month. This consistent effort by Binance suggests a belief in LUNC’s potential recovery and future value.

 

QUESTION: WILL LUNC EVER RECOVER?

 

The ideal scenario would involve more aggressive burns across all exchanges, not just Binance. If every platform implemented even a 1% tax on transactions for burns, the impact on Terra Luna Classic’s market position could be substantial. This strategy aims to reduce the circulating supply to drive up the price, supporting the recovery of the USTC peg within the Terra ecosystem.

 

However, this vision faces opposition from those against such aggressive burn policies. Without popular support and a solid utility foundation, Terra Luna Classic struggles to maintain relevance, particularly in competitive spaces like NFTs, where utility and investor returns are crucial.

 

>>> Read more: 5 NFT Projects to Watch in July 2024

 

Despite the challenges, there is optimism about its potential to reach significant price points, like $0.01. This could be driven by both adoption and speculative popularity, similar to what we’ve seen with cryptocurrencies like Shiba Inu and Dogecoin.

 

CONCLUSION

 

While Terra Luna Classic faces a challenging path forward, the consistent support from Binance through these burns is a positive sign. It highlights the potential for recovery and growth, provided there is sufficient community backing and strategic implementation of burn policies across all exchanges.

 

 

>>> Read more:

 

 

 

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