Terra Luna Classic (LUNC) is seeing a strong price surge today, climbing around 24% to a high near $0.00004905 as traders rush back into the token. The sharp rally comes even as the broader crypto market remains flat, with Bitcoin hovering near $67,000.
The sudden rally has caught traders’ attention. But what exactly is pushing LUNC higher today?
Massive LUNC Token Burns Reduce Supply
One of the biggest reasons behind today’s rally is large token burns. According to the Luna burn metrics, around 32 million LUNC tokens were burned today. This brings the total weekly burn to about 224.46 million tokens.
So far, about 85.58 billion LUNC tokens have been burned. That is nearly 19% of the total supply.
However, community-driven burns have been a key mechanism for restoring confidence in LUNC since its collapse in 2022.
Beyond the big burns today, LUNC also saw a sharp rise in trading activity. Its 24-hour trading volume surged 466%, reaching around $74.3 million,
Legal Action Against Jane Street Adds Attention Back to Terra
Another reason for the recent surge is fresh discussion about Terra’s past collapse. Reports say the SEC has started investigating Jane Street over possible market manipulation in stocks and crypto products.
The lawsuit alleges that the trading firm used insider information to front-run positions and intentionally trigger the depegging of TerraUSD on May 7, 2022. That collapse erased nearly $40 billion from the crypto market.
Some members of the LUNC community now believe the Terra crash may not have been only an internal failure, but possibly the result of an external attack.
At the same time, more people online are discussing Do Kwon. Some believe he made mistakes but did not plan a scam.
Despite today’s strong moves, LUNC remains far 100% below its historical peak of $117.Â
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