Are the Luna Classic coins being destroyed? Yes, but not nearly enough
Since May, when Do Kwon published a burn address for Luna Classic tokens on the Terra Classic blockchain, billions of these coins have been destroyed permanently.
As expected, the burn rate for Luna Classic (LUNC) skyrocketed after the inclusion of a burning tax in September.
Maybe, but is it enough to cause a LUNC price rise in the next 12 months?
The answer is now “no,” but that may change if LUNC takes cues from successful alternative cryptocurrencies like EverGrow.
In November, LUNC’s burn rate dropped by 49 percent.
According to Terrarity.io’s LUNC Burning Chart, the monthly burn rate for LUNC was down 49% in November when compared to the previous month.
The 18.8 billion LUNC used in October drops to 9.2 billion in November.
Originally, the burning tax on LUNC trades (including on Binance) was 1.2%, but the community voted to lower it to 0.2%, and this reduction shows what effect that decision is having. It was decided to set aside 20% of all burn funds for ecosystem growth.
The concern that arises now is why the Luna Classic building is still ablaze.
Keep your hopes up if you anticipated that you might be able to purchase a LUNC token for one dollar in the near future. At the very least, it will take fifty-four years to consume enough Luna Classic for the price to drop to one dollar. You’ll understand why this is the case if you take a look at the current market cap needed for LUNC to reach $1, which is as follows:
Value of six billion dollars if purchased for one cent.
60 billion dollars worth of market cap at a price of one cent.
To put it another way, a market capitalization of $600 billion at a price of $0.1
An investment of only one dollar would result in a market valuation of six trillion dollars.
When you consider that the value of the entire cryptocurrency market is less than one trillion dollars, LUNC’s valuation of six trillion dollars is ludicrous.
November saw a 350% increase in the EverGrow burn rate.
In November, EverGrow used up roughly one-tenth of one percent of its total circulating supply.
If the rate at which Luna Classic burns doesn’t excite you, then take a look at what EverGrow is accomplishing:
EverGrow transactions consume 2% of each and every transaction, while LUNC transactions use only 0.2% of each and every transaction to burn tokens.
EverGrow is destroyed using one hundred percent of the revenue generated by the multi-chain NFT marketplace LunaSky.
EverGrow will be funded using one hundred percent of the revenue generated by the future Crator crypto-integrated social media app, as well as one hundred percent of the revenue generated by a wallet, swap, and metaverse experience.
It shouldn’t come as a surprise, but after using up 1% of the EverGrow supply in November, the price shot up by 43 percent.
EverGrow’s supply might be reduced by as much as 15% per year if it continues to burn at the current rate. After the launch of the wallet, swap, and metaverse experience at the beginning of 2023, it is possible that the burn rate may double.
Learn more about the process that EverGrow uses by clicking here:
In the next five years, there is a good probability that a LUNC token with a value of $1 may become a reality if Luna Classic were to implement some of the burn strategies that EverGrow has been doing.
However, as of right now, there is simply not enough being burned to make it a bullish indicator that one should buy LUNC.