Binance, the largest cryptocurrency exchange by trading volume, has burned an additional 1.4 billion Terra Luna Classic (LUNC) tokens. This action brings the total amount of LUNC burned by Binance to more than 59 billion tokens. The Terra Luna Classic community has collectively burned over 113 billion LUNC tokens so far.
Why Is Binance Burning LUNC Tokens?
The exchange recently transferred 56 billion LUNC tokens to a burn address as part of its ongoing LUNC burn initiative. These activities were conducted shortly after the monthly LUNC burn, following a pattern seen in previous months. Despite these efforts, the exact cause behind the considerable drop in value during these burn events remains uncertain.
What Are the Price Trends for LUNC and USTC?
On May 1, Binance moved 4.17 billion LUNC tokens to the burn address. To date, around 59.07 billion LUNC tokens have been burned from trading fees associated with LUNC spot and margin trading pairs. In April alone, Binance incinerated over 100,000 LUNC tokens after burning 4.17 billion tokens.
The rise in cryptocurrency prices has sparked increased trading volumes. In March, trading volumes for LUNC exceeded $100 million daily, pushing prices above $0.0002. However, in April, volumes decreased to around $30 million, causing prices to drop to $0.0001.
Key Takeaways for Traders
Here are some actionable insights for traders:
- Monitor LUNC burn events for potential price volatility.
- Increased trading volumes may signal short-term price movements.
- Consider the broader market trends when trading LUNC and USTC.
- Be aware of significant monthly burns as these can impact token supply and price.
Currently, LUNC shows a price uptick, aligning with the broader market trends. Trading at $0.0001091 after a 6.5% increase, the token’s highest and lowest levels in the past 24 hours were $0.0001017 and $0.0001096, respectively. Trading volume also surged by 28%, reaching $27 million.
Conversely, the ecosystem’s other token, USTC, saw a 6% rise within 24 hours, trading around $0.0224.