The LUNC burn has now been in full swing for a couple of months now. In a bid to reduce the large supply of the token, investors had taken to sending coins to dead (burn) addresses. There had been a slowdown though toward the end of 2022 as the holidays came with low momentum but the first day of the new year has seen this quickly change. Already, the burn rate is up more than 6,000% as investors re-commit to the cause.
LUNC Burn Jumps 6,940%
The LUNC Burn Tracker account on Twitter has shown a significant bump in the amount of LUNC tokens being burned. Leading up to the end of 2022, LUNC burn figures had dropped drastically to 3 figures and below.
For example, on Friday, Dec. 30, only 295,979 LUNC tokens were burned worth only $43. The last day of the year would be no different as the burn tracker account reported that only 2,022,866 tokens worth $298 were burned. However, the story would be drastically different on the first day of the year.
The report shows that on Sunday, a total of 142,426,318 LUNC tokens were burned. This translated to $21,400, meaning there was a 6,940 increase in burned coins from the previous day. Interestingly, the large majority of the burned tokens came from a single account.
🔥 Daily Burn Stats for Sun Jan 01 2023! 142,426,318 #LUNC ($21,400) burned! 📈 6,940% increase. 50 burns @ 3 BPH. 1 LUNC = $0.00015025 #LunaBurn
— LunaBurnTracker (@LunaBurnTracker) January 2, 2023
The address identified to be from non-custodial hosting and staking service Alludes had burned 123,755,691 tokens worth $18,302 in a single transaction. Another transaction carrying 18,0009,329 tokens worth $2,695 originated from Terra Casino. Together, these two platforms were solely responsible for the massive jump in burn rate.
How Does It Reflect On Price?
The jump in the LUNC burn rate has reflected quite positively on the price of the digital asset. It has seen some gains over the last 24 hours that have brought its price comfortably above the $0.00015 level. This high price of the digital asset also contributes to the high dollar value of the burned tokens on Jan. 1, 2023.
Price increase follows surge in token burn | Source: LUNCBUSD on TradingView.com
Data from Coinmarketcap shows that in the last day, the coin is already up about 4%. This puts it in the green, along with the rest of the market – another possible explanation for why the cryptocurrency has been seeing an upside recently.
Nevertheless, a burn such as this one tends to promote positive sentiment in the community. But it is important to note that even at the current rate, it is way too slow to make even a sliver of a dent in the massive 6 trillion tokens currently in circulation.