Date: Mon, Nov 04, 2024, 09:08 AM GMT
Following the todays completion of a major token burn by Terraform Labs (TFL), Terra’s main tokens, Terra Classic (LUNC) and TerraClassicUSD (USTC), saw little spark on their prices. Despite TFL’s burn of a substantial 251 billion $LUNC and 264 million $USTC , both tokens have remained relatively flat, with LUNC up by only 0.41% and USTC by 0.02% as of today.
Source: Coinmarketcap
Shuttle Bridge Shutdown and Token Burn Details
As part of its recent settlement with the U.S. Securities and Exchange Commission (SEC), TFL committed to burning specific assets held in its Shuttle Bridge wallets by the end of October. The Shuttle Bridge, which allowed for cross-chain transfers, was permanently shut down by TFL on October 31, 2024, to prevent further use.
Source: classic-bridge.terra.money
The tokens held there—251 billion LUNC and 174 million USTC—were burned in this process today, marking a significant step toward reducing circulating supply.
Source: X
With this burn, a total of 251 billion LUNC and 264 million USTC have been removed from circulation. This represents a sizeable reduction in absolute terms, yet it hasn’t significantly influenced the token’s market performance.
Why Didn’t the Burn Trigger a Price Pump?
Though the burn numbers are high, they are still modest relative to the massive circulating supply of these tokens. For example, as per coinmarketcap LUNC has a total circulating supply of 5.45 trillion tokens , while USTC stands at 5.56 billion. The recent burn accounted for about 4% of LUNC’s circulating supply—a reduction, but not substantial enough to create scarcity in a way that would impact the price notably.
Source: Coinmarketcap
The muted market reaction suggests that more drastic supply control measures may be needed to bring about meaningful price changes. With the Terra Classic community focused on restoring value, this event may pave the way for further steps aimed at boosting token value.
Market Sentiment and Future Outlook
While today’s burn was a significant logistical move for TFL and the Terra Classic community, market sentiment has remained cautious. Many investors may be awaiting further supply reduction events or utility enhancements to drive sustainable price increases for LUNC and USTC.
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Disclaimer: This article is for informational purposes only and is not financial advice. Always conduct your own research before investing in cryptocurrencies.
