Binancethe world’s largest crypto exchange by volume has executed another large-scale Terra Classic (LUNC) engraving, continuing its supporting role for the Terra Classic ecosystem. Despite the substantial reduction in supply, the price of LUNC and its daily trading volume have declined significantly.
Binance burns LUNC tokens
May 23, Binance initiated another separate LUNC burn from his 21st batch of LUNC burns on May 1st. According to LUNC burn tracker Terra Finder, the crypto exchange transferred approximately 29,828 LUNC tokens to a dead wallet, with transaction fees of 11.33 LUNC.
Typically, on the first of every month, Binance performs a large-scale LUNC burn worth several thousand dollars. On May 1, the crypto exchange burned around 1.4 billion LUNC tokens, worth around $140,000, recording a total burn of over 57 billion at the time.
Data From Binance’s LUNC tracker, “LUNC metrics” revealed that the total number of LUNC burned by Binance increased to 59.07 billion LUNC tokens, which represents approximately 51.9% of the total LUNC burned by the Terra Classic Community. Additionally, the crypto exchange had started its monthly combustion cycle following the Terra Luna crash in 2022, terminating over 59 billion LUNC tokens in 2,965 transactions.
The highest LUNC burn executed by Binance was recorded on March 2, 2023. The crypto exchange burned 8.84 billion LUNC tokens, significantly reducing Terra Classic’s token supply.
Collectively, the total number of LUNC tokens burned by the Terra community reached over 113.7 billion, with Binance being the largest contributor to these burns. The crypto exchange has been a fervent supporter of the Terra Classic communityconstantly helping the community reduce the staggering token supply of approximately 6.79 trillion LUNC.
Terra Classic (LUNC) price on a downtrend
Despite efforts by Binance and the community to reduce the supply of LUNC, the cryptocurrency price remained low, recording a drop of 2.15% in the last 24 hours. Usually, when the supply of a token decreases, it induces a shortage, fueling price increases as demand for the token increases.
However, with LUNC’s substantial token supply coupled with a 62.49% drop in its daily trading volume, the cryptocurrency has not seen a significant price increase.
At the time of writing, the price of the cryptocurrency is trading at $0.00011, according to CoinMarketCap. In addition, its stablecoin, TerraClassic USD (USTC) is also trading at a price of $0.022, reflecting a decline of 3.32% over the past 24 hours. USTC’s daily trading volume also saw steep losses, falling 56.26%.
These unexpected drops in Terra Classic Ecosystem follow Binance’s recent LUNC token burn, displaying a bearish effect opposite to that of a burn process intended to decrease the total supply of LUNC and potentially trigger a price rebound.
Featured image created with Dall.E, chart from Tradingview.com
