Blockchain researcher Collin Brown sees flickers of hope for Terra Classic (LUNC). His analysis points to a rise in LUNC staking and ongoing token-burning initiatives, potentially signaling a bullish trend.
One key factor is the surge in LUNC staking by the Terra Classic community. Over a trillion tokens, valued at roughly $70 million, are now staked. This translates to a 15% staking ratio, indicating growing confidence among LUNC holders. Staking essentially removes tokens from circulation, potentially driving up prices due to a reduced supply. This surge in staking activity suggests a significant portion of the community remains confident in LUNC’s long-term prospects.
Further bolstering optimism are ongoing token-burning efforts led by cryptocurrency exchange Binance. Since 2022, Binance has actively supported the Terra Classic ecosystem through a mechanism that permanently destroys LUNC tokens. On July 1st, Binance incinerated 1.7 billion LUNC tokens, marking the 23rd batch of their burn initiative.
This recent burn highlights Binance’s unwavering commitment. Since the program’s inception, they’ve independently burned over 62 billion LUNC tokens. When combined with the broader Terra Classic community’s efforts, the total number of burned tokens surpasses 125 billion. This ongoing supply reduction strategy aims to counteract the massive token inflation that occurred during the May 2022 crash.
Despite these positive developments, LUNC’s price has dipped in recent weeks. Currently, coin trades around $0.00007117, reflecting a 34% drop over the past month. However, the community remains optimistic that increased staking and consistent token burning will eventually lead to a price recovery.
The future trajectory of LUNC remains uncertain. However, the recent upswing in staking activity and Binance’s continued burn program demonstrate a collaborative effort to revive the Terra Classic ecosystem. These developments suggest a potential shift in sentiment, with investors closely monitoring how these initiatives will influence LUNC’s price in the coming months.
