Binance has completed its fifth burn operation of Terra Luna Classic (LUNC) tokens, sending over 24,853 LUNC to the dedicated address. This initiative is part of a broader strategy aimed at reducing the circulating supply of the financial asset Terra Luna Classic.
Binance intensifies the burn of Terra Luna Classic (LUNC)
In the current month alone, Binance has burned almost 498.6 million tokens, contributing to a net total of approximately 73.04 billion LUNC removed from the market. This figure represents 17.8% of the total tokens burned by the entire Terra Luna Classic community, which has collectively reduced the supply by a significant 411.17 billion LUNC.
In particular, in the last seven days, the community has burned more than 383 million tokens, including a peak of 200 million LUNC in a single day, Wednesday. All this has brought the total circulating supply down to about 6.49 trillion tokens, a significant figure for the asset.
Future prospects: InterChain Summit and Terra Classic developments
The Terra Luna Classic community is ready to participate in the InterChain Summit of Cosmos, scheduled in Germany on June 20 and 21. During this event, crucial topics concerning the Terra and Terra Classic chains will be addressed.
Among the most anticipated points is the reactivation of the market module project, a proposal put forward by the validator Vegas. This initiative could significantly influence the governance and functionality of the Terra Classic network.
Another relevant issue is the appreciation of the pool di oracle, which has undergone a drastic decrease from 115 to 69 billion tokens in just one year. This decline worries the community, highlighting the need for interventions to support and improve trust in the Terra Luna Classic ecosystem.
Why does the price of LUNC keep falling?
Despite the substantial burn operations, the price of LUNC has shown a marginal increase in 24 hours, amounting to 0.5%, settling at $0.00005718. However, the trading volume has fallen by 27%, indicating a decline in interest among market operators.
This bearish trend confirms a negative picture already outlined in February, when a so-called “death cross” occurred. In technical terms, this happens when the 50-day moving average (50-SMA) falls below the 200-day moving average (200-SMA), a clear signal of a descending trend.
The crucial support is located near $0.000055: a break of this level could slide the price between $0.000045 and $0.00005. Additionally, the exponential moving average (EMA) in the short term (20-EMA) has fallen below the 50-EMA, further strengthening the bear signals.
Conflicting signals from the derivatives markets
On the derivatives front, the open interest on LUNC futures has increased by 0.77% in the last 24 hours, highlighting some optimism among Binance traders. In the last 4 hours, this interest has grown by another 1.54%, suggesting positive expectations.
However, on other major platforms like Bybit, open interest has decreased by 1.32%, indicating a more cautious or negative position from the operators.
Overall, the open interest on LUNC futures stands at around 8.21 million dollars, with small positive variations on platforms like OKX and Bitget.
Despite these partially encouraging signals, the general market orientation remains bear. The downward pressure on LUNC continues to limit the chances of a significant rally in the short term.
Impact of the burn and outlook for Terra Luna Classic (LUNC)
The continuous burn of Terra Luna Classic tokens represents a key mechanism to counteract the excessive dilution of the supply, a historical problem of this financial asset. By reducing the circulating supply, the aim is to improve scarcity and thus the potential value of LUNC.
However, the positive effects on the price have not yet materialized significantly. The active participation of the community and the focus on events like the InterChain Summit are important elements to drive the future of the project.
In this phase, it is essential to monitor the technical evolution of the market, especially the key supports and the signals coming from the derivatives, to grasp any changes in sentiment.
Finally, operators and investors should closely follow governance and development initiatives, such as the reactivation of the market module, which could represent a turning point for Terra Luna Classic and its ecosystem.
