As a direct result of the failure of the Terra network, the community behind LUNA Classic (LUNC) has been burning the cryptocurrency these past two months. Since then, it has gained a respectable amount of momentum, with companies like Binance getting involved.
There have been approximately 26 billion tokens destroyed up to this point. However, whether or not this constitutes a significant portion of the overall supply of digital assets still needs to be answered.
Binance, a cryptocurrency exchange, has reportedly burned more than $3 million worth of LUNC, which undoubtedly facilitated this development.
In terms of the dollar worth, it demonstrates how quickly the tokens are being consumed, which is another important takeaway from this development. On the other hand, when contrasted with the overall supply of cryptocurrency, this figure is insufficient.
The whole burned volume amounts to just 0.38% of the total supply of the digital asset or 26.3 billion tokens. This reality makes the amount of LUNC that has been burned worthless because it does not affect the supply or, consequently, the price of LUNC on the market.
— LunaClassic HQ 🌕 ™ 𒀭 (@LunaClassicHQ) November 8, 2022
As opposed to the tens of billions of tokens that would be burned at a slower rate, hundreds of billions of LUNC would need to be burned at once for the cryptocurrency to affect the market price. By doing so, the value rises due to a sizable chunk of the available supply being removed from circulation.
Will LUNC Ever Be Able To Stand Again?
Many locals still hope that LUNC can be revived to its former prominence. However, this is not easy because the digital asset’s supply has exploded from a few hundred million to trillions of tokens currently in circulation.
Binance’s burn, which involved the destruction of billions of tokens, propelled the burn campaign further. The exchange has even switched from a weekly to a monthly burn schedule, which is sure to have a significant effect due to the larger total quantity of tokens being destroyed at once.
Members of the LUNC community have also been demanding that Coinbase add support for their token. The token’s value would rise significantly, if only temporarily if this were to occur. It might be a good turning point for the digital asset, especially when combined with the steady burn.
When this was written, the price of LUNA Classic was $0.00023.
It is the 37th largest cryptocurrency and has a market capitalization of $1.55 billion. This is more than its successor Terra LUNA, which has a market capitalization of only $304 million.