Terra Luna Classic (LUNC) Price Surges 40% as Aggressive Burn Activity and Growing Staking Ratio Grab Attention

The Terra Luna Classic price surge is grabbing attention again. After a period of consolidation and bearish pressure, LUNC has surprised the market by rallying sharply

The price of Terra Luna Classic (LUNC) has surged again as it moves closer to two key milestones.

After a period of consolidation and bearish pressure, LUNC has surprised the market by rallying sharply. This breakout occurred after a descending trendline, which began in January, acted as a key resistance level, limiting LUNC’s upside for several weeks.

However, the cryptocurrency broke through this technical barrier, and it also invalidated a previously forming descending triangle pattern, often seen as a bearish indicator in technical analysis.

Moreover, the cryptocurrency is now trading above its 50-day moving average, which is usually seen as a level that separates a bullish trend from bearish territory.

Chart 1 - LUNC/USDT Live Price, Published on TradingView on April 25, 2025

Nevertheless, the Awesome Oscillator and the MACD are both in bullish territory, and the latter crossed above the zero line, a strong signal of continued buying pressure.

The cryptocurrency is now on pace to rise toward the Fib Level 0.5, which is located at $0.0001. If the current momentum holds, then reaching this level would mean another 60% gain from the current price.

The cryptocurrency is now trading at $0.00006522. That represents a nearly 40% increase from its lowest price point this year.

However, what started the recent Terra Luna Classic price surge?

One of the major catalysts behind the recent Terra Luna Classic price surge is its aggressive burn activity. Over the last seven days, the network has burned over 205 million tokens.

Since the introduction of the burn mechanism in May 2022, over 408 billion tokens have been taken out of the system. This consistent LUNC token burn is having a real effect on supply dynamics. Through its monthly burning of 50% of LUNC spot and margin trading fees, Binance has removed over 72 billion tokens from the system. Last month, it burned 521.9 million tokens, slightly down from 760 million in March, and the cumulative impact remains highly significant.

Earlier this year, Binance also announced that it would be burning 50% of its LUNC trading fees every month to support the token.

Moreover, the cryptocurrency exchange has been actively burning LUNC tokens, and in April alone, it burned a total of 1.36 billion LUNC tokens from spot and margin trading.

Out of the total LUNC tokens burned so far, 408 billion have been sent to a dead wallet, rendering them irretrievable.

However, with 410 billion tokens targeted for burning by the end of June, the cryptocurrency is quickly approaching this milestone.

If this goal is met, then it could provide another catalyst for the cryptocurrency to continue surging.

How Important Is Staking in LUNC’s Bullish Case?

While burns are reducing the circulating supply, staking is playing a growing role in LUNC’s long-term appeal.

Over 1.038 trillion LUNC tokens, nearly 15% of the total circulating supply, are staked on the network.

To put that into perspective, the staking ratio was 13% a year ago. This rising participation from long-term holders reflects more substantial confidence in the network and further limits available liquidity for trading, which can enhance upward price movement.

The combined effects of high staking and rapid token burn reinforce Terra Luna Classic’s bullish chart outlook and lend weight to the current momentum.

However, the cryptocurrency’s price performance in the coming weeks will depend on several factors.

One key event to watch is Binance's upcoming monthly token burn. If the volume spikes and the token burn crosses expectations, it could inject fresh bullish energy into the market.

On the other hand, a drop in volume or weaker staking growth could stall the rally. Macro market conditions, Bitcoin’s movement, and investor appetite for high-risk altcoins will also play a role in where LUNC heads next.

The setup looks promising for now, but caution remains crucial as crypto markets can shift quickly.