The Terra Classic (LUNC), which had been by far the best-performing cryptocurrency in the Top 100 last week and had peaked on Sunday at $0.0003657, plunged quickly and last night to a low of $0.0002991, dropping further 18% in only 36 hours.
Recall that on September 26, LUNC began to rise after reaching a low of $0.0001820. As a result, the cryptocurrency increased by 100% in less than a week at its high on Sunday.
And if profit-taking was associated with the beginning of the current decline on Sunday, disappointment is associated with the accentuation of yesterday’s collapse.
In fact, cryptocurrency exchange Binance published its first weekly report on the feature it implemented last week—the burning of LUNC tokens—which contributed to the surge of Terra.
This sum only accounts for 0.08% of the token’s total supply, making it too little to noticeably affect the token’s availability.
Be aware that there were rumors of 10 to 20 million dollars’ worth of burned LUNC tokens floating around on Sunday during the day. Therefore, the results released by Binance yesterday are quite discouraging.
Remember that the Terra Classic blockchain’s native cryptocurrency, LUNC, exploded in May, causing a loss of market value of $60 billion.
Based on the token’s trading volume between September 21 and October 1, the burn was computed. As a result, Binance removed 5.6 billion tokens from circulation.
Given that there are 6.8 trillion LUNC tokens in circulation, the burn rate is a negligible 0.08% of the entire supply, which was judged unimportant.
Terra Classic (LUC) is still up more than 70% from its price before Binance announced their LUNC token burning mechanism, despite the poor results from Binance.
