Terra Luna Classic staking ratio has hit 15%, with over 1 trillion LUNC tokens staked on the network. This milestone, combined with recent burn initiatives, has reduced a large part of the token supply, bringing new optimism to the market.
According to the Terra Classic Foundation, the amount of staked Terra Luna Classic has exceeded 1.017 trillion tokens, valued at $70.15 million at current prices. This marks a rise in the staking ratio to 15.01%, up from 14.83% a few days ago.
On July 1, Binance burned 1.7 billion LUNC tokens, marking the 23rd batch of the LUNC burn mechanism. To date, Binance has burned nearly 62 billion LUNC tokens. The total tokens burned by the Terra Luna Classic community have now surpassed 125 billion.
Binance’s continuous support for the Terra Luna Classic revival since 2022 is noteworthy. The exchange’s monthly burn mechanism significantly contributes to reducing the overall supply. The 23rd burn batch, covering the period from May 31 to June 29, burned a significant amount of trading fees. Binance alone accounts for over 50% of the total LUNC burned by the community.
The increase in the staking ratio can positively influence the Terra Luna Classic price. Higher staking ratios often indicate strong community confidence and a reduced available supply for trading. This can lead to decreased selling pressure and potential price appreciation.
Staking locks up tokens, reducing the circulating supply. With fewer tokens available for trading, demand can push the LUNC price higher. Additionally, increased staking signals long-term commitment from holders, which can attract more investors.
The crypto market faced supply pressure this week due to the Bitcoin price correction, influenced by liquidations from the Mt. Gox exchange and the German government. The Bitcoin price dropped to a four-month low of $53,550. The bearish momentum spread through the altcoin market, impacting Terra Luna Classic.
The LUNC price dropped below its seven-month support level, beginning its correction in early March when the price fell from $0.00025. By July 5, the price had dropped 73.6% to $0.0000673. However, on July 7, LUNC price saw a rebound with over 7% gains, trading at $0.00006898.
This rebound suggests that a further dip to $0.000052 might be avoided. For restricting the downturn, the LUNC price needs to break out from $0.00007 and sustain that level. The current market cap for LUNC stands at $376.43 billion. The reduced token supply owing to token burns by Binance and community staking can also aid in boosting the Terra Luna Classic price.
