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- LUNC jumped 24% as aggressive token burns reduced circulating supply.
- Trading volume surged over 400%, signaling renewed speculative interest.
- Legal headlines tied to Terra’s collapse are putting the ecosystem back in focus.
Terra Luna Classic (LUNC) is sharply higher today, rising roughly 24% as traders rotate back into the once-collapsed token. The move stands out in a relatively quiet crypto market, where major assets like Bitcoin have traded sideways. The sudden surge highlights how supply mechanics and renewed headlines can still drive strong momentum in legacy tokens.
Token Burns Tighten Supply and Boost Sentiment
A major catalyst behind the rally is the acceleration in token burns. Data shows roughly 32 million LUNC were removed from circulation today alone, pushing weekly burns above 224 million. In total, the community has eliminated more than 85 billion tokens — nearly one-fifth of supply.
These burns have become central to LUNC’s recovery narrative since the network’s 2022 collapse. By steadily shrinking supply, supporters hope to restore scarcity and rebuild investor confidence. While burns alone cannot revive fundamentals, they often influence short-term price action by reinforcing bullish sentiment.
Trading activity confirms renewed interest. LUNC’s daily volume jumped more than fourfold to around $74 million, signaling that speculative capital is returning alongside the supply reduction story.
Legal Developments Put Terra Back in the Spotlight
Another driver of the renewed attention is fresh discussion around Terra’s historic crash. Reports suggest the U.S. Securities and Exchange Commission is examining trading practices tied to Jane Street, including potential manipulation across crypto-linked products.
Allegations linked to the 2022 depegging of TerraUSD have resurfaced, prompting debate over whether the collapse stemmed purely from structural flaws or whether external trading pressure worsened the situation. The renewed scrutiny has pushed Terra-related tokens back into crypto conversations.
At the same time, online discussion has reignited around Terraform founder Do Kwon. Community members remain divided, with some attributing the failure to flawed design and others suggesting broader market forces played a role.
Strong Bounce, but Long Road to Recovery
Despite today’s surge, LUNC remains dramatically below its former highs. The token’s current price still reflects the long-lasting impact of the 2022 implosion, which wiped out tens of billions in market value and reshaped investor trust across the industry.
Also Read: Terra Luna Classic (LUNC) Jumps 100% as Viral Terra T-Shirt and Binance Upgrade Spark Frenzy
For now, the combination of aggressive burns, rising trading volume, and renewed media focus is fueling momentum. Whether that momentum can translate into sustained recovery will likely depend on deeper ecosystem developments rather than supply reduction alone.
In short, today’s rally shows LUNC still reacts strongly to narrative shifts — but its long-term path remains uncertain.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
