According to Decrypt, Terra ecosystem coins LUNA and Terra Luna Classic (LUNC) have experienced double-digit growth over the past day. LUNA's price increased by 19.1% to trade at around $0.83, while LUNC surged by 39.6% to trade at $0.00011267. This price rally follows the injection of $15 million into the Terra DeFi ecosystem by Terraform Labs, which claimed to solve the 'cold start problem' for the ecosystem. The liquidity deployment was distributed across 11 LUNA pools on decentralized exchanges Astroport and Ura.
The reason behind LUNC's price increase is less clear. LUNA was created in May 2022 to support the rebooted Terra blockchain after the collapse of its ecosystem earlier that month, when its algorithmic stablecoin TerraUSD lost its dollar peg. Terra Luna Classic is the original coin, trading under a new name. LUNC still has a long way to go before recovering its pre-crash value, when it traded as high as $119.18. This price movement in the Terra ecosystem comes just days after Terraform Labs co-founder Do Kwon's extradition from Montenegro was approved by a court in the country's capital, Podgorica. Kwon, who stepped down as the company's CEO following his arrest in March 2023 and left the company altogether in May, is sought by prosecutors in the U.S. and his native South Korea on charges relating to the May 2022 collapse of the Terra ecosystem.
