Binance, the leading cryptocurrency exchange, recently conducted a significant burn of 1,149,430,203 LUNC tokens from the excessive supply of Terra Classic. The burn was carried out in a single transaction on August 1, as reported by Luncmetrics, a community-based tracking service. The tokens were transferred from the wallet “terra18…24sqe” to a dead address. Despite this substantial burn, the market value of LUNC has not been affected and currently remains in the red.
This recent burn follows a previous burn of 132,316 tokens by Binance two weeks prior. It is worth noting that the burn on August 1 represents half of the transaction fees collected by Binance from LUNC token trading on its platform in July. Binance has committed to destroying 50% of the trading fees generated from LUNC transactions on a monthly basis, supporting ongoing burn campaigns and revitalization efforts.
However, the amount burned from July trading fees is significantly lower than the amount burned at the end of June. In June, Binance burned 1.7 billion tokens, which is over 551 million more than the burn on August 1. The highest volume of burn in 2024 occurred in April when Binance destroyed 4.17 billion LUNC tokens. The largest burn ever recorded was on January 1, with 5.5 billion tokens destroyed, making it the second-largest burn in Binance’s history.
Binance has eliminated a total of 63.27 billion LUNC tokens since May 2022, accounting for 49.3% of the efforts to reduce the excessive supply of Terra LUNC Classic. This makes Binance the largest burner of LUNC tokens. Other entities, such as DFLUNC Protocol, have also conducted burns, destroying 4.51 billion tokens, which accounts for 3.5% of the total. Additionally, team members and exchanges like KuCoin, MEXC, and Bybit have contributed to the reduction of LUNC tokens, taking over 128 billion out of circulation. However, there are still over 6.7 trillion Terra Classic tokens in circulation.
The excessive supply of Terra Classic continues to put pressure on its market value, with LUNC currently trading at around $0.00007491. The negative price growth is evident across significant timeframes. It is important to note that this article is for informational purposes only and should not be considered financial advice. Readers are advised to conduct thorough research before making any investment decisions. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. The Crypto Basic is not responsible for any financial losses incurred.