Why Binance LUNC Burn Fails to Rebound Terra Classic Price This Time?

Crypto exchange Binance’s LUNC burn in total reached nearly $65 billion as the exchange burned another 1.19 billion Terra Classic tokens. Terra Classic price in spot and derivatives markets has failed to bounce this time amid a broader crypto market selloff and debates on chain rule violations by some validators.

Binance Burns Nearly 1.2 Billion LUNC Tokens

The Terra Luna Classic community saw 1.193 billion Terra Luna Classic (LUNC) tokens burned by crypto exchange Binance, as per the burn transaction on September 1. The burn transaction also recorded 5.96 million LUNC in tax.

In the 25th batch of the LUNC burn mechanism, the crypto exchange burned $97,229.23 in trading fees for the period between July 31 to August 29. The exchange has now burned nearly 65 billion Terra Luna Classic (LUNC) tokens in the last 2 years.

The total burned Terra Classic community has reached almost 132 billion as projects, crypto exchanges, and investors burned LUNC tokens. However, the Binance LUNC burn mechanism amount has dropped significantly with time.

LUNC Price Fall on Several Factors

Tax2Gas implementation has been delayed amid several concerns including security and pull requests issues. Testnet was recently upgraded to the last binary to include Tax2Gas and several fixes by Genuine Labs. This has led traders to move away causing prices to plunge 15% in a week.

LUNC price also falling amid heated debate in the community regarding the violation of chain rules by some validators. A proposal in discussion alleged that JESUSisLORD 2 (JIL2) validator violated DynComm rule by running another validator on the same chain.

In addition, the uncertainty and volatility in the broader crypto market puts selloff pressure on altcoins. The market now awaits US jobs data for further cues on the direction in the coming days.

Terra Luna Classic price also shows weakness as it continues to trade under 50-DMA, within a range for two months now. 1000LUNC futures open interests on Binance and Bybit have dropped 6% in the last 24 hours. Thus, investors are uninterested despite Binance LUNC burn.

Meanwhile, USTC price climbed more than 1%, with the price now trading at $0.0156. Traders are buying the dip as the price dropped today. Moreover, the trading volume saw a 53% rise in the last 24 hours.

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.