Terra Classic is a community-run revival of the Terra Luna ecosystem that collapsed in a spectacular fashion in 2022. Since then, LUNC, the ecosystem’s native token, has been subjected to burns to reduce the supply and drive the price upwards. However, the upward momentum hasn’t quite materialized as expected.
According to CoinGecko, the token is down more than a percent in the past 24 hours. However, long-term investors are still trading at a loss as the token has been down nearly 100% since last year. Nonetheless, developments are made to increase the burn rate of the token.
NFTs Might Help With LUNC Burn
Cremation Coin, a protocol specifically built for burning cryptos with astronomical supply numbers, is considering the use of NFTs to help the burn rate of the LUNC token. According to one of their recent Tweets, the development team of the protocol is considering the development of an NFT collection named “Bad Abstract Art that Burns LUNC” or BAABL.
We are very strongly considering launching a “test” NFT project at some point over the next day or two.
The test project would consist of ten pieces of “Bad Abstract Art” at various price points launched on the ETH chain.
This will be the birth of “Bad Abstract 🧵
— Cremation Coin 🔥Weekly LUNC Burns🔥 (@Cremation_Coin) April 5, 2023
According to them, half of the NFT selling price would be used to burn LUNC.
“We are very strongly considering launching a “test” NFT project at some point over the next day or two. The test project would consist of ten pieces of Bad Abstract Art at various price points launched on the ETH chain.” the team said in the first tweet in the thread.
If they push through with this, they will release the collection on other blockchains.
As of writing, 53.08 billion LUNC has been burnt since May 18, 2022, with 1.8 billion LUNC burned today. Despite these impressive figures, LUNC still has 5.89 trillion tokens in circulation. It will take some time before the burning becomes a massive influence on LUNC’s price action.
This Crucial Support Should Be Monitored By Bulls
$0.00012 is the token’s crucial support. Looking at the bigger picture, the token has not made any upward price actions in the past few months. If the bears break through this support, investors will experience a bigger downside in the long term.
Crypto total market shedding a few digits at $1.13 trillion on the daily chart at TradingView.com
For now, LUNC bulls should defend this support level before targeting any resistance in the future. However, the LUNC market has been dominated by bears. According to CoinGlass, short sellers outnumber long buyers in all major exchanges.
The general market movement will also affect the token’s price movement. As of writing, the total market cap of crypto is down 2% today. Monitoring the token’s correlation with the major cryptos would ensure better decision-making in the future.
– Featured image from Criptokio