🚀LUNC Storm: Terra Luna Classic Price Mystery Revealed

Terra Luna Classic (LUNC) token prices have faced tremendous pressure this year, despite increased token burns.

On Friday morning, LUNC traded at $0.00007615, down 60% from its 2024 peak and 75% from its historical peak. In this situation, is LUNC still worth investing in?

Price collapse under token burns

Despite the network continuing to burn billions of tokens, LUNC prices have fallen sharply in recent months. LUNC Metrics data shows that more than 3.1 billion tokens were destroyed in the past week, with a cumulative destruction of more than 403 billion, and the circulating supply is now 6.5 trillion.

Binance, DFLUNC Protocol and LunaticsToken are the main destroyers, destroying more than 70 billion, 4.5 billion and 1.9 billion tokens respectively, and the destruction will continue to grow in the future.

Token burns are the transfer of cryptocurrencies to inaccessible addresses, aiming to increase scarcity by reducing supply, thereby pushing up prices.

Reasons for the price collapse

There are two main reasons behind the LUNC price collapse. One is weak demand, which caused the price to plummet. Many investors kept their distance due to LUNC's historical problems.

Terra was once at the top of the cryptocurrency industry, with a market value of over $45 billion, most of which was pegged to the UST stablecoin and once provided double-digit returns.

After UST decoupled in 2022, Terra collapsed, and the community took over LUNC and worked hard to build a new ecosystem.