The LUNA Classic (LUNC) community has now been burning the cryptocurrency for a couple of months now following the collapse of the Terra network. It has been on a reasonable momentum since then with the likes of Binance joining in on the action. So far, there have been more than 26 billion tokens burned, but the question still remains if this is significant to the overall supply of the digital asset.
Less Than 0.4% Of The Supply
The LUNC burned has since crossed 26 billion. Obviously, this was helped along by crypto exchange Binance which has burned more than $3 million worth of LUNC at this point. It also goes to show how fast the token burn is moving in terms of the dollar value. However, when held up against the total supply of the cryptocurrency, this number falls short.
At 26.3 billion tokens burned, it puts the total burned volume at just 0.38% of the total supply of the digital asset. In the end, it makes the burned figure inconsequential since it has no significant bearing on the supply and by extension, the price of LUNC in the market.
For LUNC to record any impact on the price, more coins would need to be burned at an accelerated rate, which would mean hundreds of billions of tokens instead of tens of billions. This way, there is a significant amount of the supply being taken out of circulation, and a reduced supply means a higher value.
Can LUNC Ever Recover?
For many in the community, they continue to hold out hope that LUNC will somehow be able to regain some semblance of its past glory. However, it is easier said than done given that the digital asset whose supply was previously a couple of hundred million now runs into the trillions of tokens circulating in the market.
Binance’s burn has helped to push further the burn initiative by burning billions of tokens. The crypto exchange has even changed from its one-a-week burn schedule to a once-a-month burn schedule which would no doubt have a significant impact since the number of tokens burned in one fell swoop will be higher.
The LUNC community has also been clamoring for crypto exchange Coinbase to list the token. If this were to happen, it would no doubt boost the value of the token, even if just for a little while. Coupled with the continuous burn, it could be a good turnaround point for the digital asset.
LUNA Classic is currently trading at $0.00023 at the time of this writing. It is the 37th largest cryptocurrency with a market cap of $1.55 billion, putting it ahead of its successor Terra LUNA, which has a market cap of $304 million.
Featured image from Coingape, chart from TradingView.com