Binance, the world’s largest cryptocurrency exchange, has recently announced that it has burned 1.14 billion Terra Luna Classic (LUNC) in the 12th batch of the Terra Classic burn mechanism.
The burned tokens were obtained from trading fees on margin and spot trading pairs in July. This recent burn brings the total number of LUNC burned by Binance to about 37 billion and the total burn by the Terra community to about 71.5 billion.
Another Record Burn of LUNC Tokens
According to details of Binance’s burn transactions dated 1st August, the platform lost about 7.06 million LUNC in transaction charges to send 1.14 billion LUNC to the burn address. The move is in line with efforts to lower the number of tokens in circulation.
However, while Terra is known for regularly looking to burn down its huge pool of LUNC in circulation, the platform is far from achieving any desirable results that would positively impact the token’s market value via burn mechanisms.
The 11th batch of the burn mechanism was for the period of 30th June to 30th July 2023. The latest burn, which is the 12th batch, brings the total number of LUNC burned by Binance to about 37 billion Tera Luna Classic tokens from trading fees on spot and margin trading pairs.
Binance had previously burned 2.65 billion Terra Luna Classic tokens in July. However, the burn rate increased significantly last month due to positive sentiments from the proposed parity upgrade in July, Professor Edward Kim’s AI application chain Block Entropy and a proposal to work towards USTC’s re-peg.
Token price falls after rising following Binance burn | Source: LUNCUSD on Tradingview.com
Terra Luna Classic Token Price Reaction
Members of the Terra community have burned about 71.5 billion tokens in total. This surpasses the recent 70 billion LUNC milestone. Following the latest burn, Terra ecosystem tokens have fallen below key support levels, with LUNA dropping by 5%, while LUNC and USTC fell by 2% and 7%, respectively.
This comes against the backdrop of Judge Rakoff denial of Terraform Labs and Do Kwon’s application to dismiss the US Securities and Exchange Commission’s lawsuit using the precedent established by Judge Torres’ ruling.
Presently, the altcoin’s price is trading at around $0.000081. However, according to market speculations, LUNC’s price may recover above the $0.00009 support level because of the triangle pattern formation. Meanwhile, Terra’s once supposed stablecoin USTC is, at the time of writing, priced at $0.015 according to data from CoinMarketCap.
