Terra (LUNA) is rising and becoming one of the biggest winners in the cryptocurrency market today. The token is recording a strong, double-digit price increase.
The sharp increase coincides with today's scheduled announcement of the verdict for founder Do Kwon and the latest ecosystem updates that have drawn attention to the network.
Why is the price of Terra (LUNA) rising?
Altcoin started rising at the end of last week, and the momentum accelerated on Monday after the network update v2,18,0. Major exchanges like Bybit and Binance supported the update and temporarily suspended deposits and withdrawals to ensure a smooth transition for users.
This translated into a noticeable improvement in market sentiment. Moreover, the token reached a 7-month high yesterday. Currently, the upward trend is still ongoing.
Data from BeInCrypto Markets showed that the price of LUNA increased by 55.58% in the last 24 hours. At the time of writing this, the altcoin was priced at 0.232 USD.
It is worth adding that today's increase has made LUNA the second largest daily gainer on CoinGecko. Trading activity has also increased, and the daily volume has jumped by 192.10% and exceeded 700 million USD.
In addition to network updates, another important factor driving increased interest is the announcement of the verdict for Terraform Labs founder, Do Kwon.
Kwon is set to appear before Judge Engelmayer in the Southern District of New York District Court today. The Department of Justice is seeking a 12-year prison sentence.
The analyst noted, however, that sentences may differ from the prosecutors' requests. Bankman-Fried himself received 25 years, although prosecutors sought 40-50 years. Alex Mashinsky received 12 years, despite a request for 20 years. Camol wrote:
“I will not speculate on the exact length of the sentence, but it would be naive to think that he will get more than 12 years, especially considering the time already served.”
Meanwhile, Toknex expressed concerns about the rise in LUNA's price, warning traders not to see this as a genuine rebound:
“This is not a return. This is not based on fundamentals. This is just pressure from the community. The real Terra ecosystem collapsed in 2022. This new LUNA has no narrative or lasting value. It only moves when traders want to play the volatility.”
With the impending announcement of the verdict, the community is increasingly interested not only in LUNA but also in Terra Luna Classic (LUNC). Renewed attention has pushed both tokens to the top of CoinGecko's trending list today.
BeInCrypto reported last week that the price of LUNC rose by 100% when a journalist wore a vintage Terra Luna shirt during Binance Blockchain Week in Dubai.
As both LUNA and LUNC return to the spotlight, market participants remain divided on whether the recent increase is a genuine recovery or just another spike driven by volatility.
To read the latest cryptocurrency market analysis from BeInCrypto, click here.
