Terra Luna Classic (LUNC) is seeing a strong price increase today, rising around 24% to a high of almost $0.00004905 as traders rush back to the token. The sharp rally comes even as the broader crypto market remains flat, with Bitcoin hovering around $67,000.
The sudden rally has caught the attention of traders. But what exactly ensures that LUNC rises?
Massive LUNC token burns reduce supply
One of the biggest reasons behind today’s rally is great symbolic burning. According to the Luna burn statsapproximately 32 million LUNC tokens were burned today. This brings the total weekly burn to approximately 224.46 million tokens.
About 85.58 billion LUNC tokens have been burned so far. That is almost 19% of the total supply.
However, community-driven burns have been an important mechanism for rebuilding trust in LUNC since LUNC’s collapse in 2022.
In addition to today’s big burns, LUNC also saw a sharp increase in trading activity. The 24-hour trading volume increased by 466%, reaching approximately $74.3 million,
Legal action against Jane Street puts the spotlight back on Terra
Another reason for the recent increase is the new discussion about Terra’s past collapse. Reports say that the SEC has begun investigating Jane Street over possible market manipulation in stocks and crypto products.
The lawsuit alleges that the trading firm used insider information to gain positions and deliberately initiated the depegging of TerraUSD on May 7, 2022. That collapse wiped out nearly $40 billion from the crypto market.
Some members of the LUNC community now believe that the Terra crash was not just an internal failure, but possibly the result of an external attack.
At the same time, more and more people are discussing Do Kwon online. Some believe he made mistakes but did not plan a scam.
Despite today’s strong moves, LUNC remains well over 100% below its historical peak of $117.
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