The Terra Classic (LUC) cryptocurrency is gaining more and more traction. Recent announcements related to this asset make traders optimistic about its value in the future. Here’s what happens.
Crypto LUNC enters the top 10
Terra Classic (LUC) has recorded strong trading activity in recent days. Its value increased by more than 70% over the week, for more than 44% over the month. This is a significant gain when you consider that the rise of other cryptos has been weaker lately. It should be noted that Terra Classic (LUNC) is currently trading around $0.00033, a far cry from its price of $100 in April.
In addition, the LUNC managed to enter the top 10 most traded cryptocurrencies. This situation was beneficial for its market capitalization which increased to more than 2.1 billion dollars. This propelled it closer to Bitcoin Cash (BCH) which is currently the 30th largest crypto by market cap.
The rise in the price of LUNC was partly prompted by an announcement from the largest crypto exchange. Indeed, last Monday, Binance had announced that he was going to proceed with the reduction of the supply of the LUNC token. He plans to deploya burn mechanism to burn all transaction fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address“.
Note that a token is burned when it is transferred to an address that no user can control. The number of tokens in circulation is then reduced, which often accelerates the price action.
In the aftermath of Binance’s announcement to cut LUNC’s supply, the price of the crypto rose. This was an increase of more than 55%: this price went from $0.00018 to $0.00031. Later, it fell to $0.00026 before rising to around $0.00034 at the start of the month.
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