LUNC Has Burned 26 Billion Coins, But Is That Enough?
LUNC Has Burned 26 Billion Coins, But Is That Enough?
The LUNC (LUNA Classic) coin has been burned by the community for two months since the collapse of the Terra network, and so far, 26 billion coins have been burned, but the question remains whether this is significant for the overall supply of the digital asset.
LUNC coin has burned less than 0.4% of supply
Since then, LUNC has exceeded 26 billion blocks burned. This is clearly helped by crypto exchange Binance, which has burned more than $3 million from LUNC at this point. It also shows how fast the token burn is moving in dollar terms. However, when compared against the total supply of cryptocurrency, this number is still low.
With 26.3 billion tokens burned, this is only 0.38% of the total LUNC supply. In the end, the burned currency is not important because it does not significantly affect the supply and therefore the price of LUNC in the market.
For LUNC burning to have any effect on price, more coin must be burned at an accelerating rate, i.e. hundreds of billions of tokens instead of tens of billions. This way, more supply is removed from circulation and less supply means more value.
Can LUNC recover from the above?
For many in the community, they continue to hope that LUNC can somehow be restored to its former glory. However, this is easier said than done when a digital asset that was once a few hundred million wide is now running into trillions of tokens in circulation on the market.
Also read: Cocaine supports LUNC’s 1.2% incineration tax proposal
Binance’s LUNC burn helped propel the burn initiative by burning billions of tokens. Binance has also changed from a weekly burning schedule to a once-monthly burning schedule, which has a huge impact as the number of tokens burning at a time has increased.
The LUNC community is also asking Coinbase to list the token. If this happens, it will undoubtedly increase the value of the token, if only for a short period of time. Along with constant combustion, this could be a good turn for the coin.
The current price of LUNC at the time of writing this article is $0.00023. It ranks as the 37th largest cryptocurrency with a market capitalization of $1.55 billion, ahead of its successor, Terra LUNA, which has a market capitalization of $304 million.
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