Terra (COIN: $LUNA) refers to Terra 2.0, after the original Terra protocol changed its name to Terra Luna Classic (LUNC). It operates as a decentralized public blockchain that features the $LUNA token. This token is used for governance and staking.
In the past 24 hours, the $LUNA protocol has seen its value rise over 56.7% to $0.1661 per coin. Let us deep dive into why LUNA is suddenly rising after remaining dormant for over three years.
Why $LUNA is Rising
One of the reasons behind the optimism is the deployment of Terra chain v2.18, an update released on December 8, 2025. The update fixes several bugs that were impacting stability and also improves the efficiency of transactions. This optimization has led to an explosion in daily trading volume, which is now at $344.56 million.
Binance announced a suspension of withdrawals from the Terra network during the update, showing the seriousness of the upgrade. The explicit support of $LUNC after the Do Kwon affair has helped to restore confidence in the project.
In the upgrade, developers also made some security improvements that will protect users from vulnerabilities. That is especially important given the failures that led to the 2022 collapse.
Do Kwon Is Back In The News
The 2022 collapse of the Terraform project led to losses bigger than those caused by SBF of FTX, OneCoin, and Celsius combined, according to prosecutors. Prosecutors are calling for Do Kwon to be jailed for 12 years after he admitted to defrauding investors. Do Kwon is to be sentenced in a Manhattan Court on December 11, 2025. As the sentencing date nears, it has reignited interest in LUNA and LUNC, leading to the current price explosion.
Meanwhile, Kwon’s defense requested five years, pointing out that he served time in Montenegro and could potentially be extradited and prosecuted in South Korea. However, US prosecutors say only a lengthy sentence would reflect the scale of his fraud and serve as a deterrence.
When the Terraform ecosystem collapsed, it had over $50 billion in market cap at its highest. The ecosystem was powered by an algorithmic stablecoin called UST that was backed by an algorithmically controlled mechanism linked to LUNA. This was unlike most other coins, which are backed by tangible assets like US short-term Treasuries.
While Kwon portrayed the ecosystem as automated, it later came out that it ran on hidden trading activity, secret deals, and deceptive metrics to maintain a façade of success.
Terra LUNA Market Performance
Over the past month, Terra LUNA has gained 113.2% in the past week and 67.4% in the past month. Since its all-time high on May 28, 2022, of $18.87, its price has dipped 99.1%. The token dipped to an all-time low of $0.04581 on October 10, 2025, but has since risen 263.9%.
IS Terra LUNA A Buy?
With Do Kwon making headlines, interest in Terra LUNA has spiked recently. $LUNC also recently went viral after a viral moment in Dubai, which has helped boost the price of LUNA. The gains of the past few days have been impressive. With Do Kwon set to be sentenced soon, that could provide another price boost. However, like with all crypto, it is hard to predict the future direction. Despite this, adding $LUNA to your portfolio could potentially lead to impressive short-term gains.
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