luna burning
  • The Terra Luna Classic community has staked over 1 trillion LUNC tokens, raising the staking ratio to 15%.
  • This increase, along with significant token burns by Binance, has contributed to a recent price recovery.

A Surge in Staking and Price Recovery

The Terra Luna Classic community has recently witnessed a significant milestone: the total staked Terra Luna Classic (LUNC) tokens have surpassed 1 trillion, pushing the staking ratio to 15.01%. This surge in staking activity coincides with a recovery in LUNC’s price, spurred by a broader market rebound.

According to the Terra Classic Foundation, over 1.017 trillion LUNC have been staked on the network, valued at $70.15 million at the current price. This increase from a 14.83% staking ratio to 15.01% reflects growing community confidence in the cryptocurrency. The Terra Classic Foundation highlighted this achievement on social media platform X, emphasizing the significance of this development.

The Impact of Binance’s Burns

A notable contributor to this positive sentiment is the continuous support from Binance. The world’s largest cryptocurrency exchange recently burned 1.7 billion LUNC tokens on July 1, marking the 23rd batch of the LUNC burn mechanism. To date, Binance has burned nearly 62 billion LUNC tokens, significantly reducing the overall supply. The total LUNC tokens burned by the community have now exceeded 125 billion.

Binance’s monthly LUNC burn mechanism, which started in 2022, plays a crucial role in the Terra Luna Classic revival. The latest burn covered the period from May 31 to June 29, eliminating a substantial amount of trading fees. Remarkably, Binance accounts for over 50% of the total LUNC burned by the community.

Staking Ratio and Price Dynamics

The increase in the staking ratio is a positive indicator for Terra Luna Classic’s price. Higher staking ratios generally signal strong community confidence and reduce the available supply for trading, leading to decreased selling pressure and potential price appreciation. Staking locks up tokens, reducing the circulating supply, which can push the price higher. Additionally, increased staking reflects a long-term commitment from holders, attracting more investors.

The recent price rebound in LUNC, following a significant drop, suggests a potential stabilization. On July 7, LUNC saw over 7% gains, trading at $0.00006898. This rebound indicates that further dips might be avoided, especially if LUNC breaks out from $0.00007 and sustains that level. The current market cap for LUNC stands at $376.43 million.

The combination of reduced token supply due to burns by Binance and increased community staking can aid in boosting Terra Luna Classic’s price. As the market continues to recover and with strong community support, LUNC’s future looks promising.

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.