Token

DeFi

Terra

Cosmos

<p>The <a href="https://bitcoinist.com/terra-luna-classic-launches-bug-bounty-program/">Terra community</a> was in a celebratory mood as the LUNC token saw a significant price surge over the weekend. As revealed by a member of the community, this price surge has been attributed to the actions of the <a href="https://bitcoinist.com/binance-faces-obstacles-in-uk-market/">foremost crypto exchange, Binance</a>.</p> 
<h2 id="binance-burns-more-lunc-tokens">Binance Burns More Lunc Tokens</h2> 
<p>MrDiamondhandz, a member of the Terra community, hinted in an X (formerly Twitter) <a href="https://x.com/MrDiamondhandz1/status/1753976829285724370?s=20" rel="nofollow" target="_blank">post</a> that Binance had contributed to the latest price surge following their recent LUNC token burns. <a href="https://www.luncmetrics.com/top-burners/binance" rel="nofollow noopener" target="_blank">Data</a> from LUNC Metrics showed that the <a href="https://bitcoinist.com/binance-50-market-share-bnb-to-the-moon/">largest crypto exchange</a> burned over 2 billion tokens on February 1.&nbsp;</p> 
<p>That move ultimately triggered an increase in <a href="https://bitcoinist.com/lunc-bullish-crypto-price-0-0005/">LUNC’s price</a>. The crypto token was one of the biggest gainers over the weekend, with its volume surging by over 700% on February 4. On the same day, Binance burned an additional 135,000 LUNC tokens, something which could have contributed to the sustained upward movement.&nbsp;</p> 
<p><a href="https://bitcoinist.com/shiba-inu-burns-bright-shib/">Token burning</a> is one of the <a href="https://www.newsbtc.com/all/how-terra-luna-classic-token-burn-may-drive-lunc-and-ustc-to-1/" rel="nofollow noopener" target="_blank">primary mechanisms</a> the Terra community devised to revive LUNC following the LUNA crash in May 2022. This led to the introduction of a 1.2% burn tax on all on-chain transactions, which Binance agreed to implement. The goal is to eventually reduce LUNC’s circulating supply to 10 billion.&nbsp;</p> 
<h2 id="binance-s-contribution-to-the-ecosystem">Binance’s Contribution To The Ecosystem</h2> 
<p>Binance has played an active role in helping achieve these token burns. The crypto exchange is the <a href="https://www.luncmetrics.com/" rel="nofollow noopener" target="_blank">number one LUNC burner</a>, with over 51 billion tokens burned so far. That figure also accounts for 52.2% of all the tokens that have been <a href="https://www.newsbtc.com/analysis/lunc/lunc-300-gains-ath-market-cap/" rel="nofollow noopener" target="_blank">removed from circulation</a>. Before these February burns, Binance had already burned over 5.5 billion tokens in January this year.&nbsp;</p> 
<p>LUNC still has a circulating supply of 5.78 trillion, and a significant portion of these tokens will have to be burned if the crypto token hitting at least $1 is to become a reality. Token burns do not also work in isolation, as there will need to be an increased demand for the token. That explains why the development team <a href="https://www.newsbtc.com/analysis/lunc/ustc-lunc-to-1/#:~:text=Steady%20At%20%2446%2C000-,Crypto%20Veterans%20Team%20Up%20With%20New%20Proposal,LUNC%20And%20USTC%20To%20%241&amp;text=The%20LUNC%20community%20has%20received,the%20USTC%20and%20LUNC%20tokens." rel="nofollow noopener" target="_blank">continues to take steps</a> to increase LUNC’s utility.&nbsp;</p> 
<p>Recently, the <a href="https://bitcoinist.com/terra-classic-lunc-l1-team-completes-testnet-upgrade-to-v2-0-0/">team collaborated</a> with Genuine Labs, a group of experienced developers, to integrate IBC Hooks and Packet Forward Middleware into Terra Classic. This move can help enhance liquidity and cross-chain DeFi applications. Terra’s compatibility with the Cosmos chain will undoubtedly help new money flow into the ecosystem.&nbsp;&nbsp;</p> 
<p>At the time of writing, LUNC is trading at around $0.0001067, up over 1% in the last 24 hours, according to <a href="https://coinmarketcap.com/currencies/terra-luna/" rel="nofollow noopener" target="_blank">data</a> from CoinMarketCap.</p> 
<p><img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/FtnujLhA/" alt="LUNC price chart from Tradingview.com (Binance)" width="3286" height="1530"></p>

LUNC Price Surged 20% Over The Weekend, Here’s Why

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