Binance, the world’s largest crypto exchange by volume has executed another large-scale Terra Classic (LUNC) burn, continuing its supporting role for the Terra Classic ecosystem. Despite the substantial supply reduction, the price of LUNC and its daily trading volume have been falling significantly.
Binance Burns LUNC Tokens
On May 23, Binance initiated another LUNC burn separate from its 21st batch of LUNC burns on May 1. According to LUNC burn tracker, Terra Finder, the crypto exchange transferred about 29,828 LUNC tokens to a dead wallet, with a transaction fee of 11.33 LUNC.
Typically, on the first of every month, Binance executes a large-scale LUNC burn worth thousands of dollars. On May 1, the crypto exchange burnt approximately 1.4 billion LUNC tokens, valued at around $140,000, recording a total burn of more than 57 billion at the time.
Data from Binance’s LUNC tracker, ‘LUNC metrics’ have revealed that Binance’s total LUNC burn has increased to 59.07 billion LUNC tokens, representing approximately 51.9% of the total LUNC burned by the Terra Classic community. Additionally, the crypto exchange had begun its monthly burning cycle following Terra Luna’s 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 has burned a whopping 8.84 billion LUNC tokens, significantly reducing Terra Classic’s token supply.
Collectively, the total LUNC tokens burnt by the Terra Community has reached over 113.7 billion, with Binance being the leading contributor to the burns. The crypto exchange has been a fervent supporter of the Terra Classic community, consistently aiding the community to diminish the token’s staggering supply of approximately 6.79 trillion LUNC.
Terra Classic (LUNC) Price On A Downtrend
Despite Binance and the community’s effort to reduce LUNC’s supply, the cryptocurrency’s price has remained low, recording a 2.15% decline in the last 24 hours. Usually, when a token’s supply is diminished, it induces scarcity, fueling price increases as demand for the token grows.
However, with LUNC’s substantial token supply coupled with a 62.49% decline in its daily trading volume, the cryptocurrency has failed to witness any significant price increases.
At the time of writing, the price of the cryptocurrency is trading at $0.00011, according to CoinMarketCap. Additionally, its stablecoin, TerraClassic USD (USTC) is also trading at a price of $0.022, reflecting a 3.32% decrease over the past 24 hours. USTC’s daily trading volume has also recorded steep losses, falling by 56.26%.
These unexpected declines in the Terra Classic ecosystem follow Binance’s recent LUNC token burn, displaying an opposite bearish effect from a burning process meant to decrease LUNC’s total supply and potentially trigger a price rebound.