Haciyev Reşit 
While the overall cryptocurrency market is showing a generally flat and cautious trend, Terra Luna Classic (LUNC) has recorded a notable surge. LUNC’s price rose by approximately 24% in the last 24 hours, reaching $0.00004905. In an environment where Bitcoin is stabilizing around $67,000 and major altcoins show limited movement, this sharp rally has refocused investors’ attention on the Terra ecosystem. Increased trading volume and renewed discussions about Terra on social media have also fueled interest in LUNC. Such isolated rallies in a calm market often indicate that a strong narrative or a specific development is driving the price. So, why is LUNC rising today? Here are the main factors behind the rally:
Large LUNC Token Burns Reduce Supply
One of the primary drivers of today’s rise is the increase in token burns. According to Luna burn data, about 32 million LUNC tokens were burned today alone, bringing the weekly total burn to over 224.46 million tokens. In total, approximately 85.58 billion LUNC tokens have been burned so far, representing roughly 19% of the total supply. Gradual reduction in circulating supply is viewed positively by investors for long-term value growth. Community-driven burn mechanisms remain one of the key factors in rebuilding trust following the major collapse in 2022.
The surge in LUNC price is not only due to reduced supply but also increased trading activity. In the past 24 hours, LUNC’s trading volume jumped to around $43.33 million. This spike indicates renewed speculative interest and the return of short-term traders to the market. Higher volume and liquidity provide a stronger technical foundation for price movement while keeping volatility elevated.
Jane Street Case Rekindles Terra Discussions
Another important trigger for the recent surge is the SEC investigation into Jane Street. Allegedly, during the TerraUSD (UST) depegging process on May 7, 2022, Jane Street may have used insider information to take positions that accelerated the collapse. The TerraUSD crash wiped about $40 billion from the crypto market and remains one of the largest crises in the sector. Now, ongoing investigations and lawsuits have brought Terra-related discussions back into focus. Some LUNC community members argue that the collapse was not just due to internal system failures but possibly triggered by external market attacks. This narrative has gained traction again on social media, partially improving perceptions of Terra. If claims of external interference gain credibility, some investors might reassess the project.
At the same time, online discussions about Terra founder Do Kwon have increased. Some investors acknowledge mistakes but argue that the event may not have been a planned fraud. This perspective has slightly softened negative sentiment toward Terra Luna Classic, boosting short-term speculative interest.
LUNC Is Still Far From Its All-Time High
Although LUNC has shown strong gains today, it remains far below its historical peak of $117. The current price compared to the all-time high shows a massive gap. The 24% rally in Terra Luna Classic is the result of a combination of increased token burns, a surge in trading volume, and renewed attention from the Jane Street investigation. Analysts caution that such sharp movements carry high volatility, and speculative narratives may only have a temporary effect on the price. LUNC’s future direction will depend on both the sustainability of the burn mechanism and developments in the ongoing legal cases.
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