Newton Gitonga
Binance has again extended its care for the Terra community following Terraform Labs’ bankruptcy.
According to the latest announcement, the leading crypto exchange has expanded leverage for trading LUNA by four times.
Binance raises LUNA leverage to 75x
The Terra Luna community sees more bullish news amid continued broad market rallies.
Binance has magnified leverage and lowered maintenance margin rates for LUNA.
Meanwhile, the changes are exclusive for individuals looking to execute positions of 0 – 5,000, 5,000 – 25,000, and 25,000 – 100,000.
Further, the exchange expanded leverage to 51 -75x from 11-20x for positions of 0 – 5,000, confirming support for anticipated Terra Luna’s rallies.
Binance raised LUNA leverage to 75x, sparking a surge in trading as LUNA and LUNC prices rise. LUNA has gained 45% in a month, with LUNC futures open interest hitting 100 billion. However, the long-term sustainability of this rally remains uncertain, and caution is advised.
Also, the trading firm updated margin tiers and leverage for JOEUSDT, CHRUSDT, QNTUSDT, LOOMUSDT, ORBUSDT, and XEMUSDT.
Meanwhile, the Terra ecosystem has seen increased support lately.
Former Binance CEO CZ signaled support for LUNC and LUNA recovery in his X post early this month.
On 11 November, Changpeng Zhao tweeted about “finally” crossing the chasm.
The post referred to cryptocurrencies’ resilience in claiming a spot in the global financial space.
Crypto enthusiast WSB Trader Rocko reacted to the post with gratitude, thanking CZ for his crypto support, “especially LUNC!”
Changpeng Zhao hilariously reacted, “Ah, don’t mention it.”
The conversation highlighted one of the areas in which Binance has made significant impacts – supporting assets linked to the debacle Terra ecosystem.
Binance has been pivotal in LUNC’s revival and in ensuring trust within the Terra community.
The exchange has incinerated more than 1 billion LUNC coins, worth around $116K, in its ongoing token burn initiative.
The program aims to reduce the asset’s circulating supply – a vital move in boosting LUNC’s demand.
Moreover, the recently released USTC re-peg white paper supports the revival plans.
The new proposal looks to alleviate the LUNC ecosystem through various modifications to the stablecoin structure.
Meanwhile, Binance’s leverage adjustments come as the crypto market appears ripe for extended gains, with Bitcoin eyeing the coveted $100,000.
LUNA, LUNC, USTC price action
Terra tokens displayed massive momentum as Biannce’s announcement added to the ongoing recoveries.
LUNA trades at $0.4985 after gaining 5% in the past 24 hours. It touched a daily low and high at $0.4747 and $0.5034.
The altcoin witnesses magnified trading activity in the derivatives market (Coinglass data), possibly due to Binance’s adjustment to leverage.
LUNC followed the upside trend, soaring from $0.0001157 to the $0.0001252 24-hour peak.
The alt changes hands at $0.0001223 during this publication, with the 30% surge in daily trading volume suggesting more upswings.
Meanwhile, Terra Classic USD (USTC) recorded a modest gain of 2% within the past day.
The altcoin trades at $0.02512, with $25.73 million in 24-hour trading volume.
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