Binance Burn Amount for Terra Classic (LUNC) Expected to Dip in May
Binance, the leading cryptocurrency exchange, has been a major supporter of the Terra Classic (LUNC) ecosystem since its crash in May 2022. This support comes through a monthly burn mechanism where a portion of LUNC trading fees are used to incinerate tokens, permanently reducing the total supply.
Binance Burn Program: A Pillar of LUNC Revival Efforts
Since its launch in 2022, Binance’s LUNC burn program has been instrumental in attempts to revitalize the token’s value. As of April 2024, Luncmetrics reports that Binance has burned over 57.66 billion LUNC, representing over half (51.9%) of all LUNC tokens ever burned by the entire community.
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The most recent burn, the 20th iteration, eliminated 4.17 billion LUNC tokens, valued at $722,630 based on March’s trading surge.
Market Downturn Impacts LUNC Trading Activity
However, the broader cryptocurrency 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 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.
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Despite community efforts and the recent rejection of a controversial proposal, April’s average daily trading volume sits around $30 million, falling below February’s numbers. This significant drop in activity translates to a potential decrease in the amount of LUNC burned in the upcoming batch.
A Modest Burn for May?
Considering the lower trading volume in April, Binance might burn 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 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 vital role. Although Binance may not burn as many tokens this month, its continued commitment is valuable, and future burns can contribute to LUNC’s long-term prospects.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
