luna burning
  • Terra Classic (LUNC) is trading at $0.000106 with significant community efforts including Proposal 12104 to reactivate interblockchain communication and Binance’s substantial token burns potentially creating upward price pressure.
  • Despite these efforts, reaching $3 would require sustained demand, further supply reductions, and favorable market conditions.

Today, Terra Classic (LUNC) is trading at $0.000106 with a 24-hour trading volume of $11.19 million. Despite a market capitalization of $610.85 million and a market dominance of 0.03%, LUNC’s price has declined by 2.79% over the past 24 hours. Historically, LUNC peaked at $119.01 on April 5, 2022, and hit its lowest point at $0.00001651 on May 13, 2022. Since then, the highest price it has achieved is $0.000590. Currently, the price prediction sentiment for Terra Classic is bearish, even though the Fear & Greed Index indicates a ‘Greed’ level of 72.

The Revival Plan: Reactivating Osmosis IBC

A significant factor in Terra Classic’s potential resurgence is Proposal 12104, known as “Reactivate Osmosis IBC.” Introduced by developer Fragwuerdig, a former core development team member, this proposal aims to re-enable interblockchain communication (IBC) between Terra Luna Classic and Osmosis. This update is crucial for facilitating seamless communication and asset transfers between the two blockchains.

The proposal has garnered overwhelming support, with over 96% of votes in favor and only 3% opposing it. The voting deadline is set for May 25. Validators such as LuncGoblins, Moon Rabbit Validator, and MoonRunners have endorsed the proposal, highlighting its critical importance. Upgrading the IBC client from version 07-tendermint-12 to 07-tendermint-250 is necessary to address technical obsolescence and ensure continued interoperability and performance of the Terra Luna Classic network.

Binance’s Strategic Burns: A Path to Scarcity

Adding to the positive momentum, Binance, the world’s leading cryptocurrency exchange, has executed another substantial burn of Terra Luna Classic (LUNC) tokens. In its 21st round of the LUNC burn mechanism, Binance eliminated an additional 1.4 billion LUNC tokens, pushing its total burned to over 59 billion tokens. Collectively, the Terra Luna Classic community has burned more than 113 billion LUNC tokens.

Token burning is a strategic process used to decrease the circulating supply of a cryptocurrency, potentially enhancing its value by creating scarcity. Binance’s regular burning of LUNC tokens is part of its strategy to support the Terra Luna Classic community and aid in the token’s revival. By burning 1.4 billion LUNC in its latest round, Binance not only reduces the supply but also reaffirms its ongoing commitment to the community’s objectives.

The Road Ahead: $3 Ambition

The cumulative burn of over 59 billion LUNC tokens by Binance, alongside the broader community’s efforts resulting in over 113 billion tokens burned, highlights a significant collective effort to stabilize and potentially increase the value of Terra Luna Classic. Binance’s monthly burns are crucial in this ongoing process, demonstrating the importance of coordinated actions in the cryptocurrency market to achieve long-term goals.

However, while these efforts support the potential for price appreciation, predicting a specific target such as $3 involves considering broader market factors, investor sentiment, and overall demand for LUNC. Although the burns are a positive step towards price stabilization and potential growth, reaching $3 would likely require sustained demand and further reductions in supply, alongside favorable market conditions.

By vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.