Crypto exchange Binance continues its commitment to reviving Terra Luna Classic (LUNC) through token burning. This week, Binance incinerated another batch of LUNC, bringing the total burned by the exchange to over 59 billion. However, the recent market-wide selloff has tempered hopes of an immediate price surge for LUNC and its algorithmic stablecoin counterpart, USTC.
Binance Ramps Up LUNC Burn
According to LUNC Burn Tracker, Binance sent an additional 1.4 billion LUNC to the burn wallet this week. This latest burn pushes the total LUNC destroyed by Binance to over 59 billion, representing more than half (51.9%) of all LUNC burned by the community. The total community burn now sits at over 113.7 billion LUNC.
This ongoing burn mechanism aims to reduce the overall supply of LUNC, potentially leading to price appreciation in the long term. However, the recent broad market retracement has dampened investor enthusiasm.
Also Read: LUNC Seeks Lifeline: Community Votes to Revive Osmosis Bridge for Liquidity Boost
Market Selloff Casts Shadow on LUNC and USTC
The crypto market experienced a significant pullback in recent US hours, mirroring the selloff that followed the SEC’s approval of spot Bitcoin ETFs in January. This broader market trend has impacted LUNC and USTC prices.
LUNC’s price has dropped 3% in the last 24 hours, with trading volume significantly lower compared to Wednesday’s surge. While the price remains slightly higher than pre-burn levels, it’s far from a sustained rally.
USTC, the algorithmic stablecoin that lost its peg to the US dollar in May 2022, also suffered a 4% drop over the past day. Profit-taking by traders likely contributed to this decline.
What Lies Ahead for LUNC and USTC?
The recent LUNC burn by Binance demonstrates the project’s commitment to recovery. However, the success of this initiative hinges on long-term community support and a favorable market environment. The recent market-wide selloff highlights the need for broader market stability to translate burning efforts into significant price increases.
While the “buy the dip” strategy might be tempting for some investors, it’s crucial to consider the overall market conditions and LUNC’s long-term prospects before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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