Terra Luna Classic Hit Major Burn Milestone, LUNC Price Breakout Imminent?

The Terra Luna Classic (LUNC) ecosystem has seen a breakthrough as the total number of tokens burnt has crossed the 400 billion milestone. This development has triggered a renewed sentiment regarding a potential boost in LUNC price after the recent market-wide drawdown.

The Terra Luna Classic Burn Outlook

According to the current Terra Luna Classic burn tracker update, the ecosystem has torched 405,867,335,786 LUNC. Beyond this, the ecosystem also saw the burning of 3,510,760,806 USTC to double down on its deflationary strategy. Notably, this burn LUNC and USTC spanned only from May 2022 when the Terra ecosystem imploded.

Specifically, over the seven days leading to March 8, approximately 1.2 billion LUNC was burned through tax mechanisms. The protocol’s biggest token burn ally, Binance, contributed immensely to the latest torching. 

Binance Exchange helped eliminate 760 million LUNC from circulation, which is the February trading commission income. The recent reaffirmation of Binance LUNC backing has further placed the spotlight on the token’s price rally.

It is worth noting that the Terra Luna Classic burn mechanism is achieved through multiple means. These include onchain tax burns and community and partner contributions.

Terra Luna Classic Price Outlook

Despite the historic shift in the burning program in the ecosystem, the LUNC price is yet to move in tandem. However, at the time of writing, the LUNC price was changing hands for $0.00005976, up 2.05% in the past 24 hours.

Over this period, the token has moved from a low of $0.00005505 to a daily high of $0.00006067 before settling at the current price. The Terra Luna Classic has faced intense pressure over the past few months amid the broader market scrutiny.

As selloff pressure intensified, LUNC saw a 5.74% decline in the trailing 7 days, with the Year-to-Date (YTD) slump coming in at 46%. Just like LUNC, the price of USTC is up by 6.3% to $0.01195. The stablecoin has effectively trimmed its weekly losses to 7.49%

An earlier LUNC price analysis considered the prospect of a 90-day breakout. While the token has a promising deflationary feature, broader market sentiment forms a headwind.

LUNC Ecosystem Updates

Earlier this year, the Terra Luna Classic protocol detailed five major developments designed to guide its growth in the short term. These updates include the removal of fork modules and token burn, among others. While the project has delivered on most of its plans, the move to enhance the ecosystem remains pivotal.

With the latest LUNC and USTC burn, ecosystem sentiment is likely to trigger a breakout in the short term.