Several tokens linked to the two Terra ecosystems, Terra 2.0 and Terra Classic, have more than doubled in value over the past week, pushing year-to-date gains to over 10,000%. This notable surge could be regarded as one of the most impressive project reversal stories in the cryptocurrency industry. Notably, three tokens—Luna Classic (LUNC), Terra 2.0 (LUNA), and TerraUSD Classic (USTC)—have experienced a substantial 70% increase in the last 24 hours, further extending their weekly gains to over 300%.
Cumulative trading volumes have surpassed the $2 billion milestone, as per data from CoinGecko. Terra Classic, the original network developed by Terraform Labs, remains an independent blockchain, distinct from Terra 2.0—a forked version that emerged following Terra’s collapse. Notably, Terra 2.0’s LUNA is actively traded, alongside Terra Classic’s original tokens, LUNC and USTC.Several catalysts fueled these surges. Last week, Terraform Labs allocated $15 million to enhance liquidity in two Terra ecosystem projects, making specific trading pools more appealing for on-chain traders. In the preceding month, Mint Cash, a Bitcoin-focused payment project, announced plans for a USTC revamp, backed by bitcoin (BTC) for its dollar-pegged stability, with an airdrop program for LUNC and USTC holders.Simultaneously, Binance continued its burn scheme, permanently reducing the circulating supply of LUNC based on transactional fees earned from LUNC trading pairs.
In June, a group of six engineers, self-dubbed the “Six Samurai,” presented a revival plan for the Terra Classic ecosystem. The proposal includes features like a terraUSD testnet for testing financial services, an application designed to generate yield for token holders, and a strategy to incentivize developers based on the user activity their applications generate.The well-known Terra network, under the leadership of Do Kwon, faced a collapse in May 2022 when the mechanism supporting the algorithmic stablecoin terraUSD (UST) faltered. This event resulted in a drastic 99% decline in the values of Terra’s LUNA and UST tokens in the subsequent weeks.
