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- Terra Luna Classic’s 69% price drop in a year highlights challenges despite ongoing token burn efforts.
- Despite burning over 405 billion tokens, LUNC’s price remains stagnant amid limited upgrades and market pressures.
Terra Luna Classic (LUNC) has lost 69% of its value over the past year, slipping out of the top 150 cryptocurrencies by market cap. Despite the decline, its dedicated community continues burning tokens to reduce supply.
Since May 2022, more than 405 billion LUNC have been burned, with Binance playing a key role. The question remains whether these burns can drive a price recovery or if LUNC’s struggles will persist.
LUNC Supply Issues and Community Efforts
Terra Luna Classic faces an overprinted supply of 5.45 trillion tokens, making price recovery difficult. The community has been working to reduce this number through various burn mechanisms, including tax burns and contributions from exchanges. Over the past seven days alone, 1.2 billion LUNC was burned, with Binance eliminating 760 million from circulation through trading commissions.
In addition to LUNC, the community is also burning Terra Classic USD (USTC) to restore its peg to $1. So far, 3.5 billion USTC has been removed from supply. Despite these efforts, LUNC’s price has struggled to gain momentum, hovering around $0.00005976. Trading volume remains low, averaging $20 million per day on spot markets.
Network Upgrades and Binance Support
The Terra Luna Classic network has seen fewer upgrades in recent months, contributing to a decline in developer activity. However, Binance has reaffirmed its support for the ecosystem, backing the latest v3.4.0 upgrade. The exchange planned a temporary suspension of deposits and withdrawals on February 25, 2025, to facilitate the upgrade at block height 22,176,864.
Binance’s involvement has fueled speculation about a potential LUNC price breakout. Despite the ongoing token burns and network updates, LUNC has remained under pressure, recently dropping below key support at $0.00006. It briefly rebounded to $0.00008 but lacked the buying power to sustain the recovery.
LUNC’s Price Struggles Amid Market Trends and Inflation Data
LUNC’s price performance has been heavily influenced by broader market trends. The latest CPI data shows inflation at 2.8%, lower than the expected 2.9% and the previous month’s 3.0%. The token has declined 5.74% in the past seven days, with a year-to-date drop of 46%. USTC has also struggled, trading at $0.01195 after trimming its weekly losses to 7.49%.
Terra Luna Classic’s long-term recovery remains uncertain. The community continues its burn initiatives. However, with a massive supply still in circulation, reducing it to 1 billion tokens needed for a $1 price target seems unlikely in the near term. While short-term market conditions remain uncertain, some investors remain bullish on LUNC as a hedge against fiat devaluation.
