Multiple tokens linked to the Terra ecosystems, Terra 2.0 and Terra Classic, surged dramatically within the last week, showcasing staggering year-to-date increases surpassing 10,000%. Tokens like Luna Classic (LUNC), terra 2.0 (LUNA), and terraUSD classic USTC soared by nearly 70% in the last 24 hours, contributing to a weekly upswing of over 300%. CoinGecko’s data confirms trading volumes have collectively surpassed $2 billion.
Terra Classic, originally developed by Terraform Labs, has retained independence while Terra 2.0 emerged as a fork following Terra’s crisis. Both networks boast actively traded tokens – LUNA for Terra 2.0 and LUNC and USTC for Terra Classic.
This surge follows various developments. Terraform Labs allocated $15 million to bolster liquidity in specific trading pools within the Terra ecosystem, attracting on-chain traders. Mint Cash, a Bitcoin-centric payment initiative, revealed plans to restructure USTC, intending to link it to Bitcoin for dollar-pegged stability, alongside an airdrop scheme for LUNC and USTC holders.
Binance continued its token burning practice, removing LUNC from circulation using transactional fees from LUNC trading pairs. Additionally, a group of engineers, the “Six Samurai,” proposed a revitalization plan for Terra Classic in June, outlining initiatives like a terraUSD testnet for financial service trials and rewarding developers for app-generated user activity.
The Terra network, overseen by Do Kwon, suffered a collapse in May 2022 due to challenges with the algorithmic stablecoin terraUSD (UST), resulting in a drastic 99% decline in Terra’s LUNA and UST tokens shortly thereafter.
