LUNC and USTC See Small Price Bumps as Binance Burns 1.4B Terra Luna Classic Tokens

Key highlights:

• Binance burned 1.4 billion LUNC tokens on August 1st, its 12th LUNC burn event this year.
• This brings the total LUNC tokens burned to 71.6 billion.
• The burn led to a small price bump for LUNC, now trading around $0.000081.

The saga of Terra Luna Classic (LUNC) continues. Like a phoenix rising from the ashes, the embattled cryptocurrency saw a small price bump this week after Binance burned 1.4 billion LUNC tokens.

Binance, the world’s largest cryptocurrency exchange, has been steadfastly supporting the LUNC community by conducting regular token burns funded through trading fees. This latest burn of 1.4 billion LUNC tokens on August 1st was Binance’s 12th LUNC burn event this year.

The specific transaction can be viewed on the Terra blockchain explorer here. It shows that Binance sent the 1.4 billion LUNC tokens to the official burn address, reducing LUNC’s total supply forever.

Massive LUNC burns bring the total destroyed tokens to 71B

According to LUNC burn trackers, this latest event brings the total amount of LUNC tokens burned to an astonishing 71.6 billion. Of that amount, over 36 billion tokens have been incinerated by Binance alone.

The exchange has made LUNC token burns a monthly ritual, using 50% of all trading fees on LUNC spot and “https://coincodex.com/crypto/terra/” href=”https://coincodex.com/crypto/terra/”>LUNC now trades at $0.00008, up from under $0.00005 after its May collapse but still far below its all-time high of around $0.000018 earlier this year.

TerraUSD Classic (USTC), the controversial stablecoin linked to LUNC, also saw a small uptick of around 7% following the burn. However, most analysts believe significant gains for both LUNC and USTC rely on the successful pegging of USTC to $1.

1.4 Billion $LUNC Was Burned Today!!#Binance pic.twitter.com/XdhcmOe5dA

— Classy ? (@ClassyCrypto_) August 1, 2023

Can consistent burns “revive” LUNC?

The Terra community remains divided on whether burns alone can revive LUNC and restore value. Proponents argue reducing the supply to 10 billion or less is necessary to match demand, thereby boosting prices.

 Others contend that demand remains weak, and LUNC’s economics are fundamentally flawed without additional utility-driving activity on the chain. Ongoing regulatory troubles faced by Terraform Labs and Do Kwon also undermine confidence.

Nonetheless, the dedication shown by Binance and other entities conducting burns provides a glimmer of hope for LUNC holders. If exchange volumes remain steady, significant portions of the supply will vanish over time. Whether that translates into a meaningful price recovery is less certain.