Binance Continues Support for Terra Classic with Monthly Burn Program
Binance’s Ongoing Commitment to Terra Classic Ecosystem
Binance, the world’s largest cryptocurrency exchange, has been a strong supporter of the Terra Classic ecosystem since the crash in May 2022. This backing comes in the form of a monthly burn mechanism where Binance allocates a portion of LUNC trading fees to burn tokens, permanently removing them from circulation and reducing overall supply.
Significant Impact of LUNC Burn Program
Since its inception in 2022, Binance’s LUNC burn program has played a significant role in attempting to revive the token’s value. According to Luncmetrics, as of April 2024, the exchange has incinerated over 57.66 billion LUNC tokens, representing 51.9% of the total LUNC burned by the entire community.
Market Downturn Impacts LUNC Trading Activity
However, the broader crypto market correction in April 2024 has significantly impacted LUNC’s trading activity. Daily trading volumes have plummeted compared to March’s highs exceeding $100 million. This decline coincides with a price drop from over $0.0002 to its current price of $0.0001068, with the market capitalization shrinking from over $1 billion to around $620 million.
A Modest Burn for May
Considering the lower trading volume in April, Binance might end up burning between 1 billion and 1.5 billion LUNC tokens during the 21st iteration of its program, scheduled for May 1, 2024. This estimation reflects the reduced trading activity compared to the previous month.
Can Terra Classic (LUNC) Recover?
Closely monitoring trading volume and derivatives activity is crucial for gauging LUNC’s future price movements. While some experts predict a potential rebound, the conditions for such a recovery remain unclear. Increased trading volume and a rise in user activity would be positive signs for LUNC’s price trajectory. The burn program will also play a crucial role. Although Binance may not burn as many tokens as it often does, its continued commitment is invaluable, and future burns can improve LUNC’s long-term prospects.
