Terra Luna Classic (LUNC) is experiencing a surge of positive developments, with staking reaching a new high and ongoing token burns raising investor confidence.
Staking Ratio Hits 15%, Over 1 Trillion LUNC Staked
The Terra Classic Foundation announced that over 1.017 trillion LUNC tokens are now staked on the network, representing a staggering 15.01% staking ratio. This significant increase from 14.83% just days ago reflects growing community confidence in LUNC’s future. With a current price tag, this staked reserve translates to a value of $70.15 million.
Binance Burns Over 60 Billion LUNC, Contributing to Supply Reduction
Further bolstering optimism, Binance, the leading crypto exchange, recently burned 1.7 billion LUNC tokens. This marked their 23rd batch of LUNC burns, bringing the total burned by Binance to nearly 62 billion tokens. When combined with community efforts, the total burned LUNC surpasses 125 billion.
Binance’s commitment is crucial. Their monthly burn mechanism significantly reduces the overall LUNC supply, impacting price positively. By taking trading fees out of circulation, they contribute over 50% of the total community burn.
Staking and Reduced Supply: A Recipe for Price Increase?
The rise in staking ratio offers another potential benefit for LUNC’s price. Increased staking often indicates strong community belief and a reduced supply of readily available tokens for trading. This can lead to two key factors:
- Decreased Selling Pressure: With fewer LUNC available for immediate sale, selling pressure diminishes, potentially causing price appreciation.
- Demand Increase: Staking effectively locks up tokens, reducing circulating supply. Lower supply with consistent demand can push the price higher.
Market Pressures and LUNC’s Price Performance
The recent crypto market correction impacted LUNC, mirroring the Bitcoin price slump to a four-month low of $53,550. This bearish trend rippled through the altcoin market, dragging LUNC’s price below its seven-month support level. The correction that began in March saw a significant drop from $0.00025 to a low of $0.0000673 on July 5th, representing a 73.6% decline.
However, a recent rebound suggests a potential reversal. As of July 6th, LUNC experienced a 7% surge, trading at $0.00006898. This uptick indicates that a further dip to $0.000052 might be avoided.
Looking Ahead: Can LUNC Recover?
For a sustained recovery, LUNC needs to break above $0.00007 and hold that level. The reduced token supply due to staking and Binance burns, coupled with a potential market upswing, could be the key factors propelling LUNC’s price forward.
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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