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Binance Burns 1.2 Billion LUNC, But Terra Classic Price Struggles
#terraClassicLunc #TerraLabs #USTC
Binance recently burned another 1.2 billion Terra Luna Classic (LUNC) tokens, bringing its total LUNC burns to nearly 65 billion. Despite these efforts, LUNC's price continues to decline under various pressures.
Binance's LUNC Burn Hits 65 Billion
On September 1, Binance completed its 25th LUNC burn, incinerating 1.2 billion tokens, bringing its total burns to almost 65 billion. This significant reduction in supply, combined with burns from other sources, has pushed the community's total burn to nearly 132 billion LUNC. However, the price impact of these burns has diminished, with LUNC still struggling in the market.
Factors Behind LUNC’s Price Decline
Several factors contribute to LUNC's recent price drop. Delays in implementing the Tax2Gas feature due to security concerns have created uncertainty, leading to a 15% drop in LUNC's price over the past week. Additionally, a community dispute over alleged rule violations by some validators has further dampened market sentiment.
Broader crypto market volatility has also impacted LUNC, with the price staying below the 50-day moving average for two months. Investor interest has waned, as seen by a 6% drop in open interest in LUNC futures on Binance and Bybit, despite ongoing token burns.
USTC Shows Some Positive Movement
While LUNC struggles, Terra's stablecoin USTC has seen a slight increase, rising over 1% to $0.0156, with a 53% surge in trading volume in the last 24 hours. Whether this positive momentum can continue amid the broader market downturn remains uncertain.
