The current LUNC fire has been rampant for several months. In an effort to reduce the large supply of tokens, investors have been sending coins to dead (burned) addresses. There was a slowdown even at the end of 2022 as the holidays arrived with little momentum, but the first day of the new year has changed rapidly. Already, the burn rate is up more than 6,000% as investors re-commit to the cause.
LUNC Burn Instantly 6,940%
The LUNC Burn Tracker account on Twitter has shown a significant bump in the number of LUNC tokens being burned. By the end of 2022, the LUNC burn rate has dropped drastically to 3 digits and below.
For example, on Friday, December 30, only 295,979 LUNC tokens were burned worth only $43. The last day of this year will not be different as the tracker account burned reports that only 2,022,866 tokens worth $298 were burned. However, the story will be drastically different on the first day of the year.
The report shows that on Sunday, a total of 142,426,318 LUNC tokens were burned. This translates to $21,400, which means there is an increase of 6,940 in coins burned from the previous day. Interestingly, the majority of tokens burned come from a single account.
🔥 Daily Burn Stats for Sun 01 Jan 2023! 142,426,318 #AWAY ($21,400) burned! 📈 6,940% increase. 50 burns @ 3 BPH. 1 LUNC = $0.00015025 #LunaBurn
— LunaBurnTracker (@LunaBurnTracker) January 2, 2023
At address identified from the non-custodial hosting and staking service Alludes has burned 123,755,691 tokens worth $18,302 in a single transaction. Another transaction that brought 18,0009,329 tokens worth $ 2,695 comes from Terra Casino. Together, these two platforms alone are responsible for a huge jump in burn rates.
How do you describe the price?
The jump in the LUNC burning rate has been quite positive in the price of digital assets. It has seen some gains over the last 24 hours that have brought the price comfortably above the $0.00015 level. The high price of this digital asset also contributed to the high dollar value of the token burned on January 1, 2023.
Price increase follows surge in token burn | Source: LUNCBUSD on TradingView.com
Data from Coinmarketcap shows that in the last day, the coin has risen about 4%. This puts it in the green, along with the rest of the market – another possible explanation for why cryptocurrency has seen upside recently.
However, fires like this tend to promote positive sentiment in the community. But it is important to note that even at the current rate, it is very slow to make a sliver of a dent in the massive 6 trillion tokens currently in circulation.
Option image from Coingape, chart from TradingView.com