Terra (LUNA) is today one of the biggest gainers in the cryptocurrency market, with a strong double-digit increase in price.
This sharp increase coincides with the lawsuit against founder Do Kwon, which is being pronounced today, and with recent updates within the ecosystem that draw additional attention to the network.
Why is the price of the Terra (LUNA) token rising?
The altcoin started to rise at the end of last week, gaining extra momentum on Monday after the v2.18.0 network upgrade. Major exchanges like Bybit and Binance supported this update and temporarily paused deposits and withdrawals to ensure a smooth transition for users.
This led to a noticeable improvement in market sentiment. The token rose to a 7-month high yesterday. Today, the upward trend continues.
Data from BeInCrypto Markets shows that the LUNA price has risen by 55.58% in the past 24 hours. At the time of writing, the altcoin is trading around $0.232.
Thanks to today's rise, LUNA is now in second place among the largest daily gainers on CoinGecko. Trading activity also surged significantly, with a 192.10% higher daily trading volume exceeding $700 million.
In addition to the network upgrade, there is another important catalyst: the lawsuit against Terraform Labs founder Do Kwon.
Kwon must appear today before Judge Engelmayer in the Southern District of New York. The U.S. Department of Justice is asking for a 12-year prison sentence.
However, an analyst noted that sentences often differ from the request. Sam Bankman-Fried received 25 years, while the prosecutor had requested 40-50 years. Alex Mashinsky received 12 years, despite a request for 20 years.
“I’m not going to speculate on how much time he will actually get, but it would be naïve to think he really gets 12+ years, especially considering the time that may have already been served,” shared Camol.
Nevertheless, Toknex has expressed concerns about the LUNA price increase and warns traders not to view the rise as a real recovery.
“This is not a comeback. These are not fundamentals. This is simply community-driven trading pressure. The real Terra ecosystem collapsed in 2022. This new LUNA has no narrative and no lasting value. The price only moves when traders want to gamble on volatility,” wrote Toknex.
As the lawsuit approaches, the community shows more interest not only in LUNA but also in Terra Luna Classic (LUNC). This attention ensures that both tokens are at the top of the trending list on CoinGecko today.
BeInCrypto reported last week that the LUNC price increased by 100% after a journalist wore a vintage Terra Luna t-shirt at the Binance Blockchain Week in Dubai.
Now that both LUNA and LUNC are back in the spotlight, market participants remain divided on whether this latest rise truly indicates renewal or is merely another volatility-driven breakout.
