According to the latest data from Decrypt, coins in the Terra ecosystem, LUNA and Terra Luna Classic (LUNC), have seen significant gains over the past day. The price of LUNA increased by 19.1% to reach around $0.83, while LUNC rose by 39.6% to reach $0.00011267. This price hike followed a $15 million investment in the Terra DeFi ecosystem from Terraform Labs. They claimed to have solved the ecosystem's "cold start problem" by distributing liquidity across 11 LUNA pools on decentralized exchanges Astroport and Ura.
The reason for LUNC's price increase remains less clear. LUNA was created in May 2022 to support the rebuilt Terra blockchain following the failure of its ecosystem earlier that month when its algorithmic stablecoin TerraUSD lost its peg to the dollar. Terra Luna Classic is the original coin, now trading under a new name. LUNC still has a long way to go to regain its pre-crisis value when it was worth $119.18. This price hike in the Terra ecosystem comes shortly after Terraform Labs co-founder Do Kwon's extradition from Montenegro was approved, a decision made by a court in the country's capital Podgorica. Kwon, who stepped down as the company's CEO after his arrest in March 2023 and finally left the company in May, is wanted on charges related to the collapse of Terra Ecosystem in May 2022.
