From Binance Burning 4 Billion LUNC, Can Terra Classic Finally Reach $1?

Binance, the world’s largest cryptocurrency exchange, recently burned more than 4 billion Terra Classic (LUNC) tokens, rekindling hopes for a revival plan and a potential push to $1.

The burn took place on April 1 and represented the exchange’s commitment to stepping up its Terra Classic revival efforts. Data from Terra Finder confirms that the exchange burned 417,585,541,800 (4.175 billion) LUNC worth $585K+ at current prices.

This figure represents 50% of the fees Binance accumulated on Terra Classic transactions in March, which is also the exchange’s commitment. To recap, Binance has pledged to burn 50% of its LUNC transaction fees every month to support the burn event and revitalization plan.

Binance has continued to honor this commitment despite its legal issues with U.S. authorities and the resignation of former CEO Changpeng Zhao. It is worth noting that the recent 4 billion burn is a sequel to a burn transaction the platform conducted on March 1.

Interestingly, Binance has been on schedule to deliver on its promises this year, conducting the first two burns at the designated times. Binance burned 5.57 billion LUNC on January 1 and 2.095 billion tokens on February 1. Cumulatively, Binance has now burned more than 14 billion LUNC worth $1.96 billion.

The exchange has solidified its position as the largest Terra Classic burner, with the latest burn bringing its total burn since the burn began to 57.66 billion. It is worth noting that the total amount of LUNC burned by all entities has now increased to 114 billion, with Binance accounting for 50% of all burnt.

Meanwhile, despite the massive burn on April 1, LUNC saw a significant intraday decline of 5.59% as the entire cryptocurrency market moved in a bearish direction. Terra Classic saw another drop on April 2, leading to a subsequent crash at 8.65%.

Can LUNC reach $1?

Nonetheless, LUNC eventually fell below the $0.00015 price level, further undermining hopes for a revival move. Notably, the Terra Classic community has been promoting the possibility of a revival of the Terra Classic ecosystem, which could see LUNC rise to $1.

The token burn event is at the heart of this revival plan, as Terra Classic’s collapse in May 2022 was caused by massive and extraordinary inflation. Interestingly, the community insists that large and sustained burn events can reduce the circulating supply of the token, thereby increasing the chances of reaching $1.

However, at the time of reporting, the circulating supply of LUNC still stands at 5.82 trillion. Despite Binance’s generous contribution, it will take years to exhaust this supply. At this point, the community would need an unprecedented burn event to achieve its goal.

Currently, Terra Classic is quoted at $0.0001401, having grown by just 1% this year, despite other cryptocurrencies in the market experiencing an impressive uptrend during the bull run. LUNC needs to rise by 713,675% from its current position to reach $1.

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