Binance Revamps Terra Luna Classic Burn Mechanism, What’s on the Horizon?
Binance, a prominent cryptocurrency exchange, has recently executed its LUNC burn mechanism multiple times within a single month, leading to heightened interest and speculation within the Terra Luna Classic community. The exchange has emerged as the primary contributor, having burned a total of 64.47 billion LUNC tokens to support the restoration of the chain and its associated price.
Is Binance Changing Its Token-Burning Mechanism?
There are indications in Binance’s LUNC burn data that suggest the exchange may have adjusted its LUNC burn mechanism, likely resulting in an increased frequency of token burns on a monthly basis. As per an earlier announcement, the exchange had committed to burning Terra Luna Classic tokens on the first day of each month. However, in the current month, the exchange conducted six token burns, deviating from its prior schedule.
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This development has triggered speculation due to Binance’s previous actions, such as reducing Terra Luna Classic spot and margin trading fees to 50% from their original 100% and delaying the distribution of the Terra Luna Classic trading fee burn contribution for several months. Despite these factors, the exchange has proceeded to burn a larger quantity of tokens during the current period.
In the 25th batch of the LUNC burn mechanism, Binance burned 1.19 billion LUNC tokens, corresponding to $97,229.23 in trading fees for the period spanning from July 31 to August 29. Additionally, the exchange has executed five transactions resulting in the burning of 199,389 LUNC tokens. Some members of the Terra Luna Classic community perceive these actions as indicative of a change in the exchange’s approach to token burning.
Market Performance
The value of LUNC has experienced a 3% increase over the past 24 hours and a 7% increase over a one-week period, with the current price standing at $0.00008557. During this timeframe, the highest and lowest recorded prices were $0.00008188 and $0.00008622, respectively. Furthermore, there has been a 16% surge in trading volume over the past 24 hours, signalling an uptick in trader interest.
Data from Coinglass has revealed that the open interest for 1000LUNC on Binance and Bybit has risen by over 5% in the last 24 hours, indicating active engagement from derivatives traders.
Price Action
Concurrently, the price of USTC has increased by more than 2%, currently standing at $0.0177. Moreover, the trading volume has surged by 72% over the last 24 hours, with a 9% increase observed over the course of a week, signifying an increase in purchasing activity among traders.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
