Date: Mon, Nov 04, 2024, 09:08 AM GMT
Following the todays completion of a major token burn by Terraform Labs (TFL), Terra’s main tokens, Terra Classic (LUNC) and TerraClassicUSD (USTC), saw little spark on their prices. Despite TFL’s burn of a substantial 251 billion LUNC and 264 million USTC, both tokens have remained relatively flat, with LUNC up by only 0.41% and USTC by 0.02% as of today.
Shuttle Bridge Shutdown and Token Burn Details
As part of its recent settlement with the U.S. Securities and Exchange Commission (SEC), TFL committed to burning specific assets held in its Shuttle Bridge wallets by the end of October. The Shuttle Bridge, which allowed for cross-chain transfers, was permanently shut down by TFL on October 31, 2024, to prevent further use.
The tokens held there—251 billion LUNC and 174 million USTC—were burned in this process today, marking a significant step toward reducing circulating supply.
With this burn, a total of 251 billion LUNC and 264 million USTC have been removed from circulation. This represents a sizeable reduction in absolute terms, yet it hasn’t significantly influenced the token’s market performance.
Why Didn’t the Burn Trigger a Price Pump?
Though the burn numbers are high, they are still modest relative to the massive circulating supply of these tokens. For example, as per coinmarketcap LUNC has a total circulating supply of 5.45 trillion tokens , while USTC stands at 5.56 billion. The recent burn accounted for about 4% of LUNC’s circulating supply—a reduction, but not substantial enough to create scarcity in a way that would impact the price notably.
The muted market reaction suggests that more drastic supply control measures may be needed to bring about meaningful price changes. With the Terra Classic community focused on restoring value, this event may pave the way for further steps aimed at boosting token value.
Market Sentiment and Future Outlook
While today’s burn was a significant logistical move for TFL and the Terra Classic community, market sentiment has remained cautious. Many investors may be awaiting further supply reduction events or utility enhancements to drive sustainable price increases for LUNC and USTC.
Disclaimer: This article is for informational purposes only and is not financial advice. Always conduct your own research before investing in cryptocurrencies.
The opinions and market insights shared on CoinsProbe represent the views of individual authors based on prevailing market conditions at the time of publication. Cryptocurrency investments carry significant risk and volatility. Readers are encouraged to conduct their own research and seek professional financial advice before making investment decisions. CoinsProbe and its contributors do not accept responsibility for financial losses or decisions made based on published content.
CoinsProbe may publish sponsored articles, affiliate links, or promotional collaborations. All sponsored material is clearly labeled to maintain transparency with our audience. Our editorial decisions remain fully independent, and advertising partnerships do not influence reviews, rankings, or published opinions.
Since 2023, CoinsProbe has delivered reliable insights on cryptocurrency, blockchain, and digital assets. Our content is created by experienced researchers and analysts who follow strict editorial standards focused on accuracy, transparency, and credibility. Every article is carefully reviewed and verified using trusted sources and current market data. We provide unbiased analysis and timely updates covering everything from emerging crypto projects to major industry developments.
