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- Binance has completed the burning of 1.2 Billion LUNC tokens.
- Despite the significance of this burning, LUNC’s price failed to move positively.
Renowned Binance Exchange has continued to support the Terra Luna Classic Community with its latest 1.2 billion LUNC token burn. Despite this activity, LUNC’s price struggled to rebound in spot and derivatives markets, raising questions among traders.
Binance’s LUNC Token Burns
Burn transaction data from Galaxy Finder revealed that Binance burned 1.2 billion LUNC tokens on September 1. The burn transaction also generated 5.96 million LUNC in taxes. Between July 31 and August 29, the crypto exchange burnt $97,229.23 in trading fees in the 25th batch of the LUNC burn mechanism. Within the last two years, Binance has burned about 65 billion LUNC tokens.
So far, projects, crypto exchanges, and investors have removed 132 billion LUNC from circulation. However, the amount of LUNC tokens removed from Binance through burning has dropped substantially over time.
As discussed earlier, Binance usually performs LUNC burn transactions on the first day of every month to support the Terra Luna Classic ecosystem. The burning mechanism reduces the total number of LUNC in circulation, potentially increasing the asset’s valuation.
Binance’s commitment to LUNC became evident even after Terra collapsed in 2022. The monthly LUNC burn has been a key component of the community’s attempts to restore LUNC’s price value and stability in the ecosystem.
LUNC Shows Weakness in Key Markets
However, the latest LUNC burn has not triggered a bullish momentum on price. Over the past week, LUNC experienced a 7.2% decline, setting its price at $0.00007859, per MarketCap data.
Also, LUNC’s price is exhibiting weakness on the 50-day Moving Average, a key technical indicator gauging performance. Notably, LUNC has been trading below 50-MA for the past two months.
Furthermore, 1000LUNC futures open interest trading on Binance and Bybit declined by 6% in the last 24 hours. This suggests reduced investor interest despite the Binance LUNC burn.
LUNC’s recent price struggles can be attributed to several factors in the community and the broader market. For example, the market is facing increasing volatility, with Bitcoin (BTC), the leading cryptocurrency, declining by 6.4% in the past week. These declining prices might have contributed to reduced optimism in the LUNC ecosystem.
Additionally, the implementation of Terra Luna Classic’s Tax2Gas was recently postponed due to some challenges, including security and pull request issues. As highlighted in our previous article, users anticipated a tax burn increase with the Tax2Gas implementation. However, the postponement has caused traders to move away, causing the LUNC price to plunge.
Furthermore, LUNC’s declining price follows a heated debate regarding validators’ breaching chain rules. In our recent update, we revealed a discussion in the community that alleged the JESUSisLORD 2 (JIL2) validator violated the DynComm rule by running another validator on the same chain.
