- The Terra Luna Classic community is abuzz with speculation following multiple LUNC token burns by Binance this month.
- In a series of five transactions, Binance has burned 199,389 LUNC tokens alongside a substantial 1.19 billion LUNC burn recently.
- Both LUNC and USTC prices have seen significant upticks, rising by more than 2% in the past week.
Delve into the latest developments in the Terra Luna Classic ecosystem, as Binance’s intensified token burning activities fuel speculation and market movements.
Binance’s Intensified LUNC Burn Raises Community Speculations
Crypto exchange Binance has conducted multiple burns of Terra Luna Classic (LUNC) tokens this month, sparking intrigue within the community. Binance, the leading contributor to the LUNC burning initiative, has incinerated a total of 64.47 billion LUNC to bolster the chain and its token price since the inception of this mechanism.
Changes in the Burning Mechanism?
Recent data analysis suggests that Binance might have revised its LUNC burn strategy, increasing the frequency of burns each month. Traditionally, Binance conducted LUNC token burns on the first of every month. However, this pattern shifted as the exchange burned tokens six times within the current month alone, an adjustment from their prior habit.
Originally, Binance reduced its Terra Luna Classic spot and margin trading fees from 100% to 50% and has delayed contributing these trading fees for token burns. The latest activity, however, sees Binance stepping up its burn operations, fueling rumors about an adjustment in their burn policy.
Impact on LUNC and USTC Prices
The price of LUNC surged by 3% over the past 24 hours and 7% throughout the week, currently trading at approximately $0.00008557. The token saw intraday highs and lows ranging between $0.00008188 and $0.00008622, respectively. Furthermore, trading volumes increased by 16% within the last day, suggesting heightened trader interest.
Derivatives Traders Showing Increased Interest
According to Coinglass, open interest for 1000LUNC derivatives on Binance and Bybit surged by more than 5% in the last 24 hours. This uptick is noteworthy as it highlights a growing interest in Terra Luna Classic from the derivatives market.
USTC Price Movement
Not just LUNC, but USTC has seen a price climb of over 2%, now trading at around $0.0177. Furthermore, the USTC trading volume skyrocketed by 72% in the last 24 hours, signaling traders’ increased activity, particularly in buying dips, manifesting in a week-on-week rise of around 9%.
Conclusion
In summary, Binance’s intensified burning of LUNC tokens this month has generated considerable speculation and impacted the tokens’ market performance positively. With trading volumes and open interest on the rise for both LUNC and USTC, the Terra Luna Classic community is closely watching Binance’s next moves, offering a potentially optimistic outlook for the ecosystem’s future.
