Binance, the world’s largest cryptocurrency exchange, announced the burning of 2.21 billion Terra Luna Classic (LUNC) tokens in the 19th iteration of the ongoing token burn mechanism, significantly impacting the LUNC ecosystem and ecosystem altcoins. This move by the cryptocurrency exchange represents a significant milestone for the Terra Luna Classic community, with the total number of tokens burned by various organizations, including Binance, exceeding 102 billion. Binance alone contributed 53 billion LUNC to this amount.
Binance Burns 2.21 Billion LUNC in Latest Token Reduction Effort
The latest LUNC burn by Binance reflects the cryptocurrency exchange’s commitment to reducing the circulating supply of the token, thereby potentially increasing its value and market sensitivity. The amount of LUNC tokens burned, exceeding 100 billion, boosts sentiment and confidence within the Terra Luna Classic community and is part of the collective effort to reduce the token’s circulating supply.
Looking at the details of Binance’s recent LUNC burn, it is seen that the cryptocurrency exchange transferred 2.21 billion LUNC to its token burn address terra1sk06e3dyexuq4shw77y3dsv480xv42mq73anxu as part of the token burn process on March 1st.
Moreover, this token burn operation included more than 270 million in trading fees accumulated on the exchange from January 31st to February 28th. Thus, the supply of LUNC on Binance was reduced.
The significant increase in the rate of LUNC token burns on Binance can be associated with the increase in trading volume seen on the cryptocurrency exchange amidst the recent rally in Bitcoin and altcoin prices. As the bull market gains momentum, the Terra Luna Classic community aims to develop benefits, funding, and network improvements that could lead to further increases in the LUNC burn rate.
Token Burns Boost Prices of Both LUNC and USTC
Following Binance’s token burn announcement, both LUNC and USTC (Terra Luna Classic’s stablecoin) prices captured strong upward momentum. LUNC’s price increased by 30% in the last 24 hours and 45% throughout February, currently trading at $0.000181.
The price of USTC also rose by 12% in the last 24 hours following a 42% increase in February, currently trading at $0.0386.