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One of the fastest-rising assets in recent days is Terra. The cryptocurrency that caused the market to collapse and end the bull run in 2022 is suddenly rising sharply. The price increase coincides with a new network upgrade, but is likely more related to the sentencing of its founder, Do Kwon, which is happening today. Read on below.
Terra (LUNA): An Unexpected Top Gainer #
Against all expectations, it is Terra (LUNA) that is in the spotlight this week. The price of the token doubled earlier this week in just a few days, from $0.07 to $0.14.
In the past two days, the price suddenly shot up another 55 percent to $0.24. The total increase this week thus comes to nearly 180 percent. At the moment, the price has fallen back slightly and is hovering around $0.20.
A History of Controversy #
The price surge comes as a surprise, as Terra (LUNA) has been out of favor with the crypto market for years. The cryptocurrency was very popular during the last bull market, until something went wrong with the backing of the stablecoin UST, which was issued on Terra’s network.
Investors exited the project en masse and the price collapsed. Due to its popularity, this dragged the entire crypto market down and ultimately brought the bull market to an end. The collapse cost investors about €35 billion in losses at the time.
The CEO and founder of Terra (LUNA), Do Kwon, was later arrested and charged on suspicion of deception and financial fraud. After that, the project faded into the background and seemed to be dying a quiet death.
Virtually no one, therefore, expected the price of Terra (LUNA) to suddenly explode this week.
Verdict Speculation Fuels the Rally #
The price increase coincided with a new upgrade of the Terra (LUNA) network, which took place on Monday. However, investors seem to be mainly speculating on the outcome of the lawsuit against Do Kwon. The court is announcing the verdict today.
The Public Prosecution Service is demanding a 12-year prison sentence. The price rally leading up to the verdict suggests that investors are speculating that the sentence may be lower. This was also the case in previous trials, such as with Sam ‘SBF’ Bankman-Fried of FTX and Changpeng ‘CZ’ Zhao of Binance.
Some analysts point out that the price increase is therefore likely temporary and will not hold. “The new $LUNA has no narrative or lasting value,” states analyst Toknex, “It only moves when traders gamble on volatility.”
Before you FOMO into $LUNA, read this. 👇$LUNA is pumping again but let’s be honest. This is not a comeback. This is not fundamentals. It is just community driven trading pressure.
The real Terra ecosystem died in 2022. This new $LUNA has no narrative and no lasting…
— Toknex (@Toknex_xyz) December 11, 2025