The value of Terra Classic (LUNC) has suffered a significant drop due to increasing selling pressure, which has impacted continued efforts to recover the token.
Terra Classic dropped 13% in one day! What’s next?
Notably, at press time, LUNC was trading at $0.00015, which has dropped almost 13% in the last 24 hours. On the daily chart, the token peaked at $0.00017.
LUNC one-day price chart. Source: Finbold
This sale also resulted in a significant capital outflow from the old original chain of the collapsed Terra (LUNA) ecosystem. The token has a market cap of $944.33 million, representing a loss of approximately $146 million in 24 hours after LUNC regained $1 billion in market cap on December 27 for the first time since 14 December. .
LUNC one-day market cap price chart. Source: CoinMarketCap
The drop in value coincides with crypto exchange Binance’s decision regarding burning LUNC tokens to help reduce supply. In this line, the exchange announced that it will burn 50% of its LUNC spot and margin trading fees instead of 100%.
Binance’s decision to burn LUNC
At the same time, Binance stated that it will delay the sending of LUNC transaction fee burn contributions until March 2023. The decision was made by the community following the guidelines in Proposal 10983 and Proposition 11111. Specifically, the LUNC community is voting on proposals aimed at reversing the decision to transfer 50% of all LUNC burns to a community development repository.
It is worth noting that the emergence of the proposal served as a critical catalyst for the LUNC rally as the community took action to reduce the token supply. Overall, after the collapse of the Terra ecosystem, the community turned to network development to bring more benefits to Terra Classic.
Meanwhile, the entity is open to news about Terra’s founder, Do Kwon, who is still in hiding. For example, LUNC was recently shaken by news that Kwon was hiding in Serbia.
Finally, the PricePredictions machine learning algorithm predicts a bearish future for LUNC, showing that the asset could trade at $0.000126 on January 1, 2023.
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