Top Reason Why LUNC Price Fell?

LUNC token’s recent 80% hike was short-lived and had a dip of around 28% the next day. Terra Classic token LUNC has a history of a drastic fall, which left the crypto market in fright of something like this happening. So, why did LUNC fell even when the market was bullish? Let’s talk about that in this blog.

LUNC Price Analysis

Terra Classic (LUNC) has gained a significant hike in the first two days of March, reaching a value of $0.0001925 with a trading volume of $487.53 Million. After a day, it faced a 28% dip where the price decreased to $0.0001721 with a volume of $399.64 Million. It was a disappointment for the investors who had hoped for a hike after years of being in loss.

This recent hike was the first positive sign after eight months of a LUNC performing poorly. The last time it performed well was at the price of $ 0.0002173 and a trading volume of $611.33 on 12 May 2023.

LUNC reached its all-time-high value of $119.18 around two years ago on  5 April 2022, down by 100%. Currently, it is trading at $0.0001918, with a 50% hike from yesterday. LUNC went through a shallow dump and is retrieving its hike with a trading volume of $221,176,948. Interestingly, the trading volume is down by 45%, indicating a low number of transactions today.

The last four days were different as the trading volume was high regardless of the price fluctuation.

Factors That Led To LUNC Price Dump

Today’s hike has already covered yesterday’s 28% drop, as it is trading with a hike of 50%. Two main reasons behind yesterday’s price drop include token burning and crypto market sentiment.

Binance Burnt 2.21 Billion LUNC

The 19th batch of LUNC burning session was completed recently on the 1st of March, where Binance burnt 2,243,572,668 worth $321,301 Terra classic token LUNC. It brings the total to 102 Billion LUNC burning in total by the community. Out of which, Binance is responsible for burning 53.48 Billion in 2,956 transactions. This burning process has been going on since May 2022, and up to now, 19 such burning rounds have taken place.

In the last month only, Binance has burnt trading fees worth around $270 million token. The community, including the exchanges, validators, projects, and people was responsible for burning 400 Million LUNC every week.

The loss of this many tokens has led to increased volatility for the LUNC, leading to changes in price momentum.

Conclusion

At the time of writing this, LUNC has retrieved some of its prices from yesterday’s drop, and it has to see how the graph will move further. Binance’s recent burning caused the initial price fluctuation of Terra Classic token, which afterward saw a dip of around 28%. Overall, the crypto market is still bullish, and the top cryptocurrencies like Bitcoin and Ethereum are performing well. So, LUNC can follow a similar trend for the next few days before dropping to its average price. Read more about trending altcoins of the week.