Terra Luna Classic Faces Supply Woes – Can Burns Rescue LUNC?

• With community-backed burning in full play, the supply strain in the Terra Luna Classic ecosystem remains pronounced.
• LUNC has sufficient burn milestones as its core proponents push for a price rebound.

The Terra Luna Classic (LUNC) coin is currently encountering supply challenges. Community members collectively contribute to millions of LUNC token burns every week, and investors wonder whether the weekly token burn can offset LUNC’s supply woes.

LUNC Encounters Supply Challenges 

The market has an overprinted supply of 5.45 trillion LUNC tokens, which has contributed to its price decline. The price of the once-thriving Terra Luna Classic dropped 69% yearly. Also, LUNC saw low trading volumes, around $20 million per day on spot markets.

Moreover, three years after its collapse, the LUNC community began burning Terra Classic USD (USTC) in hopes of eventually pegging it back to $1. Similarly, the dream of LUNC reclaiming the $1 mark appears far-fetched, with the current supply at 5.44 trillion LUNC. Hence, it would require an enormous reduction in the LUNC supply to about 1 billion tokens in circulation. 

Another factor adding to the supply woes is the silence about Terra Classic’s chain upgrades in recent months. This portrays the massive decline in LUNC developer activity. Besides, LUNC did not miss the all-around crypto bloodbath that happened earlier this week. The price dipped below the key support level of $0.00006. 

Meanwhile, LUNC touched these levels earlier on February 28, 2025, before seeing a slight rebound to $0.00008. However, the lack of a bull-powered buyup lowered the altcoin to the $0.00006 level.

Any bull resistance does not obstruct the bearish trend, as most on-chain indicators show negative values. Specifically, the momentum-determining Stochastic Momentum Index (SMI) hovered between -21 and -23, indicating a fearful market sentiment. Meanwhile, Chaikin Money Flow (CMF) is the only indicator pointing to neutrality.

As of this writing, the LUNC price was trading at $0.00006053, up 1.85% in the last 24 hours. Still, the trading volume is down 27.5% to $16.06 million, indicating investors’ dwindling interest.

Token Burns Yet to Impact LUNC

Some top crypto exchanges, like Binance and KuCoin, continue to support LUNC trading and upgrades. Binance, one of the heaviest Terra Classic token holders, has also contributed to most of the all-time LUNC burns. 

As featured in our recent coverage, the exchange has eliminated 70.85 billion LUNC tokens. To date, Binance has successfully burned over 400 billion, signaling its strong support for the coin. The aim of the token burn is to reduce the circulating supply of LUNC.

So far, the Terra Luna Classic community has destroyed 1,178,276,299 coins over the past seven days. In like manner, the protocol has burnt more than 404 billion LUNC since May 2022 when the burn program commenced.

While the burn mechanism is commendable, LUNC has declined by about 5.7% over the past week. This volatility highlights the complex interplay between token supply reduction and market demand.