coindesk.com
Several tokens tied to the two Terra ecosystems – Terra 2.0 and Terra Classic – more than doubled over the past week, extending year-to-date gains to more than 10,000% in what could mark one of the best project reversal stories in the crypto industry.
Three tokens, Luna Classic ($LUNC), terra 2.0 ($LUNA) and terraUSD classic USTC, have jumped as much as 70% in the past 24 hours, extending weekly gains to more than 300%.
Cumulative trading volumes crossed the $2 billion mark, data from CoinGecko shows.
Terra Classic is the original network created by Terraform Labs. It has continued as an independent blockchain rather than Terra 2.0, which is a forked version that was created in the wake of Terra's collapse. Terra 2.0’s $LUNA is now actively traded on the market, and so are Terra Classic’s $LUNC and USTC, the original tokens.
These pumps came on various catalysts. Last week, Terraform Labs said it had put $15 million towards two projects in the Terra ecosystem to buffer up liquidity, making certain trading pools on those platforms more attractive for on-chain traders.
Last month, Bitcoin-focused payment project Mint Cash said it was working on a USTC revamp plan that would use bitcoin (BTC) to back its intended dollar-pegged stability. The team said it would also have an airdrop plan in place for $LUNC and USTC holders.
Meanwhile, crypto exchange Binance continued to a burn scheme that permanently removes $LUNC from circulating supply based on transactional fees earned on $LUNC trading pairs.
In June, six engineers calling themselves the “Six Samurai” proposed a Terra Classic ecosystem revival plan for the blockchain – such as a terraUSD testnet for testing financial services, an application for generating yield to token holders, and a plan to reward developers for the user activity that their applications generate.
The infamous Terra network, helmed by Do Kwon, collapsed in May 2022 as a mechanism to back the algorithmic stablecoin terraUSD (UST) faltered – leading to Terra’s $LUNA and UST tokens falling 99% in the weeks afterward.