Recently, Binance, a cryptocurrency exchange that is the biggest in terms of trading volume, has burned 1.2 billion LUNC tokens, reducing the token’s circulating supply even more. This particular initiative has been received positively by the Terra Classic community, with people believing that such a move will help increase the value of the LUNC token. In the past, significant token burns have positively impacted the price direction, and many people are inclined to think this may turn on the switch for LUNC.
From the information gathered, the burn mechanism Binance uses is directed to its in-house tokens, BNB and LUNC. However, it has also selected not to engage in similar bum events for other cryptocurrencies. This selective approach raises the question of the exchange’s concentrated effort in containing the float supply of specific tokens. Through supply reduction, Binance wants to set a conducive marketplace for LUNC that may increase the token’s price.
Also Read: Binance CEO Denies Allegations of Sanctioning Palestinian Accounts Amid Growing Concerns
LUNC Price Shows Signs of Recovery
The Terra Classic community’s optimism appears to be well-founded. According to data from Coinstats, LUNC has surged by 4.62% in the past 24 hours, trading at $0.00007841 at publication. Despite experiencing a slight dip over the past week, the token has shown a 5.07% increase over the last 30 days. Furthermore, since September 2023, LUNC has risen by 29.92%.
Advertisement
Source: WSB Trader Rocko
These price movements suggest that LUNC may be on the verge of a trend reversal. While the current price remains far from its all-time high of $119.18, the recent burn and accumulating interest in the token indicate growing confidence among investors. The recent burn and continuous increase in interest in the token show that investors are gaining confidence. It reached its high in 2022; however, due to the failed Terra ecosystem, founded by Do Kwon, the token plummeted sharply. However, these recent events indicate that LUNC may be on the verge of recovery.
Conclusion
Binance’s decision to burn 1.2 billion LUNC tokens has injected new hope into the Terra Classic community. As the circulating supply decreases, and with signs of a potential price recovery, investors are watching closely for further positive developments. Although LUNC is still far from its all-time high, the combination of strategic token burns and growing market interest could soon pave the way for a significant rebound.
Also Read: Binance Resolves Regulatory Disputes in Brazil and India, Pledges Compliance
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.