Why Terra Classic Price Up Today? Spikes by 17% After Binance Burns Over 6B LUNC
Why Terra Classic Price Up Today? Binance burned more than 6 billion LUNC on Thursday in the sixth burn batch of the Terra Classic LUNA/USD+ Free Alerts burn mechanism, pushing LUNC up more than 17% in the previous 24 hours. Due to which Terra Classic LUNA prices are going up.
What is the reason?
By sending LUNC tokens worth $1 million to a dead address, Binance burned the tokens. 12.77 million LUNC was paid, according to the transaction. With this most recent burn, Binance has now destroyed nearly 20 billion LUNC tokens.
https://twitter.com/LunaBurnTracker/status/1598328804631527427?s=20&t=tYDab2NTdIS_e0n9lSyALw
By sending tokens to a burn address, or wallet, from which they can never be retrieved, they are permanently removed from use. A project deflates the market by destroying tokens, reducing the total supply. When their supply declines and they become more uncommon, tokens lose value, which causes them to appreciate in value.
Terra Luna Classic Price Prediction as Crypto Prices Rebound?
The chart of LUNC shows a gradual build-up of momentum over the last few days, with its relative strength index (purple) circling around 60, which denotes general buying pressure without being overly aggressive.
Similar to this, its 30-day moving average (red) is about to cross over its 200-day moving average (blue), forming a “golden cross” that could signal a breakout.
There is no assurance that the market, which is still unstable, will experience a sustained rally anytime soon, even if it is arguably due to one. A recent proposal to use the IBC Bridge to allow holders to exchange LUNC for LUNA also does not help the situation. The Terra community would anticipate that swaps would become possible at some point later this month, assuming the proposal is approved.
https://twitter.com/BetterLunc/status/1597675970173210624?s=20&t=FbfgSKFztwQfX3tQhfHvYw
Despite the fact that LUNA currently has a lower value than LUNC, the idea’s proponents are attempting to sweeten the deal by providing some undefined DEX-related incentives for locking up liquidity. It’s difficult to say at this point whether they’ll be sufficient to draw a sizable number of LUNC holders, given that they haven’t provided any information regarding what this might be.
Also Read: Terra Classic Community Burns 150 Million LUNC Without Binance
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