Terra ecosystem coins LUNA and Terra Luna Classic (LUNC) have surged by double-digits over the past day.
Per data from CoinGecko, LUNA is up 19.1% on the day to trade at around $0.83 at time of publication, while LUNC is up by a massive 39.6% in the past 24 hours, currently trading at $0.00011267.
The price rally comes on the heels of the injection of $15 million into the Terra DeFi ecosystem by Terraform Labs, a move that it claimed "solves the cold start problem for the Terra ecosystem." The liquidity deployment was spread across 11 LUNA pools on decentralized exchanges (DEXs) Astroport and Ura.
1/6 Last week, TFL injected $15M of capital into the Terra ecosystem on @astroport_fi and @uraxyz_, making liquidity on Terra for blue chip assets like $BTC and $ETH the deepest of any @cosmos chain 🔥
What's prompted the increase in LUNC's price is less clear.
LUNA was created in May 2022 to support the rebooted Terra blockchain following the collapse of its ecosystem earlier that month after its algorithmic stablecoin TerraUSD lost its dollar peg. Terra Luna Classic is the original coin, trading under a new name. LUNC has some way to go yet before it recovers its pre-crash value, when it traded as high as $119.18.
The Terra ecosystem's price movement comes just a few 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 departed 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.
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