CoinMarketCap: Read what our contributors have to say. This content is provided by the community. DYOR!
Terra Tokens LUNC and USTC Sparks After TFL Completes Massive Burn Linked to Shuttle Bridge
Table of Contents
Trading

Terra Tokens LUNC and USTC Sparks After TFL Completes Massive Burn Linked to Shuttle Bridge

CoinsProbe
By CoinsProbe
2 months ago
2 mins read
Terra Tokens LUNC and USTC Sparks After TFL Completes Massive Burn Linked to Shuttle Bridge
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.

Source: Coinmarketcap

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.
Source: classic-bridge.terra.money

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.

Source: X

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.

Source: Coinmarketcap

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.
2 likes
|

Other articles published on Nov 4, 2024

Market Musing-g

Crypto In Danger This Week: What Experts Fear

This week of November 4, 2024, is set to be crucial for the crypto market, with several major events likely to cause significant fluctuations. Here is an overview of the main events to watch. A wee...
By Cointribune EN
2 months ago
3 mins read
Blog

Blockchain, Finance, and the Future: How DeFi 2.0 is Redefining Financial Services

Discover how DeFi 2.0 is pioneering the next wave of decentralized finance, with innovations in security, scalability, and liquidity management.
By Zeebu_Official
2 months ago
7 mins read
Market Musing-g

Crypto Sentiment Shifts as U.S. Election Nears: Bitcoin Analysis

As the U.S. readies for the high-stakes election announcement this week, crypto traders expect heightened market activity, especially in Bitcoin trading. Data from Santiment shows that large Bitcoi...
By Coin Edition
2 months ago
2 mins read
Market Musing-g

MetaWin Suffers $4M Hot Wallet Exploit, Recovers Withdrawals for Most Users

MetaWin Suffers $4M Hot Wallet Exploit, Recovers Withdrawals for Most Users In a concerning security incident, MetaWin, a prominent online casino platform, experienced a significant $4 million expl...
By ItsBitcoinWorld
2 months ago
6 mins read
Market Musing-g

What’s Next For World Liberty Finance ($WILFI) Token If Donald Trump Wins?

With the U.S. election 2024 only a few hours away, Donald Trump’s World Liberty Financial has slashed its fundraising goal as the sales of its native token “WLFI” token fell meteorically. Reportedl...
By CoinPedia News
2 months ago
2 mins read
Market Musing-g

Unlock massive potential gains: 3 high-growth Solana alternatives

As the crypto landscape evolves, discovering new blockchain projects like CYBRO—leveraging AI for DeFi—could reveal opportunities that outperform established networks like Solana. #partnercontent
By crypto.news
2 months ago
5 mins read

Join the thousands already learning crypto!

Join our free newsletter for daily crypto updates!