LUNC, the rebranded token from the collapsed Terra ecosystem, has surged more than 74% in the past 24 hours, reaching a price of $0.0000072 amidst a significant increase in trading volume. Over the past week, the token has witnessed a remarkable rise of over 160%. This rally coincides with the impending sentencing of Terraform Labs founder Do Kwon, scheduled for December 11. Kwon has acknowledged financial fraud charges in the U.S. and faces a potential prison term of up to 12 years. Speculation among traders suggests that a definitive verdict may provide much-needed clarity to a project long entangled in legal turmoil.
The upcoming hearing is drawing attention to the token, which has struggled to regain its footing since the collapse in 2022 that erased approximately $40 billion in value from the Terra ecosystem. In tandem with the legal developments, technical factors are also enhancing interest in LUNC. Specifically, the process of token burns—where coins are permanently removed from circulation—has accelerated. In the last week alone, about 849 million LUNC tokens were destroyed, with Binance contributing by burning half of the fees from LUNC trades. As of early December, over 959 million tokens have been burned this month, with a total of 75.89 billion LUNC burned by Binance since the initiative began.
While the burn activity is relatively modest compared to LUNC’s circulating supply of 5.49 trillion, it has energized a community eager to revive the ecosystem. This renewed enthusiasm is further bolstered by Binance’s decision to pause LUNC withdrawals ahead of the upcoming Terra Chain’s v2.18 upgrade on December 8, which aims to address interoperability issues and enhance network stability.
Despite the recent gains, LUNC remains a volatile asset, outpacing the broader market, which saw the CoinDesk 20 index drop by nearly 2.3% during the same timeframe. As traders navigate the complexities of the situation surrounding Do Kwon and the structural changes within the Terra ecosystem, the potential for further price fluctuations remains. The community’s hope for a revival continues to hinge on a combination of technical improvements and legal resolutions, illustrating the intricate relationship between market dynamics and broader regulatory developments.
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