- LUNC’s price is rising ahead of Binance’s scheduled burn event, which is expected to decrease the token’s supply.
- The Terra Luna Classic community has passed a proposal to burn 46.55 million USTC.
The price of Terra Luna Classic (LUNC) has seen promising growth, fueled by bullish sentiment surrounding the upcoming Binance burn event and a new USTC burn proposal. Investors are optimistic that these developments could significantly boost LUNC’s value, positioning the cryptocurrency for additional gains.
Binance a renowned crypto exchange, has made changes to the trading fees of LUNC in a bid to improve the asset’s burn process. As stated by Binance on their official LUNC support page, the subsequent LUNC burns will be done by Wednesday, October 2, 2024. These monthly burns have historically been deemed as positive drivers of LUNC, given that they help to decrease the total supply of the token.
Binance has burned about 64.47 billion LUNC and 4.38 million USTC since May 13, 2022. This has led to a further reduction of the supply of LUNC, which has drawn the attention of the Terra Luna Classic community, which is expecting a price rally after the event.
USTC Burn Proposal Targets Inactive Mirror Protocol Wallets
The Terra Luna Classic community has recently voted for a new USTC burn proposal that plans to burn 46.55 million USTC by contract migration. As previously highlighted by Crypto News Flash, the proposal was proposed for the second time, as it failed the first time during on-chain execution due to the low balance in the USTC contract.
However, these contracts were excluded from this proposal to enhance its effectiveness, showing the community’s commitment to the project. The proposal is specifically for wallets connected to the Mirror Protocol that have not been active since the crash in May 2022.
Although the previous burn initiatives did not exert any pressure on the LUNC price, this proposal has somewhat rekindled investor interest. The community is of the opinion that with the redundant supply of USTC and LUNC tokens dealt with, there may be a more meaningful price action in the future. Efforts to reduce the circulating supply of USTC are part of the larger goal to repeg the token to its original value of $1.
LUNC Sees Price Surge and Increased Market Activity
Following the USTC burn proposal and anticipation of the Binance burn event, LUNC has experienced a notable price increase. As of the most recent data, LUNC is trading at $0.00009433, with a 24-hour trading volume of $30,642,728. The asset has declined by 2.5% in the last 24 hours and risen by 9.46% over the past week.
As of this writing, USTC’s price has declined by 2% over 24 hours, and it is currently trading at $0.0213. Additionally, USTC’s trading volume spiked 82% in the past day to $31.61 million.
Additionally, Coinglass data shows a 275.11% increase in LUNC’s trading volume and a 21.61% rise in open interest, indicating heightened market participation. Liquidation data points to bullish market pressure, with $92.49K in long liquidations compared to just $310.6 in shorts, further supporting the upward price movement.
