Binance to Burn More LUNC Tokens Despite Lower Trading Volumes
Binance, the world’s largest cryptocurrency exchange, is set to burn another batch of Terra Luna Classic (LUNC) tokens as part of its ongoing commitment to support the community’s revival efforts. This burn mechanism has been in place since 2022.
Binance: A Pillar of LUNC Revival
Binance has emerged as a key player in the Terra Luna Classic (LUNC) revival initiative. Through its monthly LUNC burn program, the exchange has already eliminated over 57 billion tokens, representing more than half (51.9%) of the total LUNC burned by the community.
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The 20th iteration of the burn mechanism saw the incineration of 4.17 billion LUNC tokens, valued at approximately $722,630. This burn amount stemmed from trading fees collected on LUNC spot and margin trading pairs during a period of significant volume increase in March.
Market Downturn Impacts LUNC Trading Activity
However, LUNC’s daily trading volume has slumped this month in line with the broader cryptocurrency market correction. In March, LUNC witnessed a surge in trading activity, exceeding $100 million daily, with prices rallying above $0.0002. Conversely, April saw average daily volumes drop to $30 million, accompanied by a price decline to the current $0.0001 level. The market capitalization has also shrunk from over $1 billion to below $600 million within a month.
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The current trading volumes are even lower than those observed in February, signifying a substantial reduction in the amount of LUNC burned. Consequently, the upcoming 21st Binance LUNC burn, encompassing the period between March 31 and April 29, is likely to involve a burn amount between 1 billion and 1.5 billion LUNC tokens, given the lack of significant volume increase during this timeframe.
LUNC Price Movement and Future Outlook
Despite the lower trading volumes, the LUNC price has exhibited a 3% increase this week, currently trading at $0.0001055. The 24-hour trading range sits between $0.0001018 and $0.0001105. However, trading volume has also witnessed a slight decrease over the past 24 hours.
Looking at shorter timeframes, LUNC remains above its 6-week descending trendline. Analysts predict continued sideways movement until a broader recovery materializes in the cryptocurrency market. A breakout above the support-turned-resistance level (red line) could trigger upward momentum for LUNC.
The continued commitment from Binance through its burn program, along with a potential market upswing, could influence the future trajectory of LUNC’s price and overall ecosystem health.
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