Altcoin
Binance burns 1.6 billion LUNC, here’s how the token reacted
- The Binance LUNC burn reached a total of 30.5 billion.
- LUNC’s price remains neutral but its developers have stayed active.
As part of its monthly routine, cryptocurrency exchange Binance burned another round of Terra Classic [LUNC] tokens, Terra Finder disclosed. The 1 April action saw the exchange, which committed to the LUNC community proposal last year, burn over 1.6 billion LUNC.
Realistic or not, here’s LUNC’s market cap in BNB’s terms
Binance embraced the burning of 50% of the trading fees received from spot and margin positions after the project’s community 1.2% tax proposal. Although there was a proposal for 100% of the fees at some point, the community voted against it.
8 is not the lucky number
The latest burn marks the eighth time that the exchange burnt LUNC tokens. The burning was aimed at decreasing the token supply and increasing its value over time. About 8.9 billion tokens were burned last time and in total, 30.5 billion tokens have been burnt as of now.
However, LUNC failed to pick up a reaction despite the burning. At the time of writing, the token value only managed a 0.75% uptick, declining to overcome the bearish state it was accustomed to in the last 30 days.
LUNC has previously had instances where the price increased or decreased significantly as a result of the burning. Other times, there was little to no reaction.
At press time, the LUNC volatility was at an extraordinarily low level, based on indications from the Bollinger Bands (BB). This indicated that the token could be about to navigate a move in either direction. However, the LUNC price at 0.00012 touched neither the upper nor lower band.
Source: TradingView
As for the On-Balance-Volume (OBV), it rose to 43.55 billion at press time. The indicator adds up the volume on uptrends and subtracts the volume on downtrends. But since it was positive, it signals that LUNC could hit a potential bullish path.
LUNC developers: Now stuck with choices
As of this writing, LUNC’s market capitalization was 743.76 million. This means that the project has been able to maintain its popularity, dominance, and circulating supply by remaining in the top 100.
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Although there were no signs that it could range above the current 62nd position, developers have been operating on its ecosystem. According to Santiment, the development activity increased to 8.19 after a small decline on 29 March.
Source: Santiment
The metric tracks the work done in public concerning upgrades on a product. So, this means Terra Classic was able to prevent a developer exodus.
