Major Update Pumps LUNA More Than 116%. Can the Token Pump More?

Terra LUNA token jumped 116% over seven days, catching plenty of traders by surprise. The rally peaked around $0.24 before pulling back to trade near $0.17 by December 12, but weekly gains still look impressive compared to where the token sat just a week ago.

Two big things drove this rally. First, Terra rolled out its v2.18 network upgrade on December 8. Second, Do Kwon just got hit with a 15-year prison sentence yesterday. Prosecutors only asked for 12 years, so the judge went harder than expected. He could’ve gotten up to 25 years maximum.

People are talking about LUNA again for the first time since everything fell apart in 2022. Volume jumped to over $700 million. Crypto Twitter went crazy debating whether this thing actually has legs or if it’s just another pump.

Why Did the LUNA Price Surge Happen Now?

The v2.18 upgrade brought real technical improvements. Devs fixed several security bugs and made the Cosmos connection work better. They also dealt with those ASTRO token problems that were causing issues across IBC channels. Both Binance and Bybit had to temporarily pause deposits and withdrawals while everything got sorted out.

When big exchanges coordinate around an upgrade like that, it shows they still take the project somewhat seriously. Traders pay attention to those signals.

But a lot of people bought LUNA thinking Kwon would get off lighter. Look at recent crypto cases – judges usually go easier than what prosecutors want. SBF got 25 years, but prosecutors were pushing for 50. Mashinsky got 12 when they wanted 20.

Kwon’s sentencing broke that trend. The judge went above what prosecutors asked for and called the whole thing “a fraud of epic generational scale.” That probably explains why LUNA dropped from $0.24 down to around $0.17 after the news hit.

What Actually Improved With v2.18?

The ASTRO token burn fixed some messy imbalances happening across IBC connections. Cosmos interoperability got tighter, which matters if Terra wants to stay relevant. The link between LUNA and USTC also got some work done on it.

Security patches that devs had been working on for months finally went live. Obviously, none of this brings back the $40 billion that disappeared in 2022. But at least it shows someone’s still building.

Trading data backed up the technical progress. Volume jumped. New wallets started poking around Terra contracts. Whether any of that sticks around is anybody’s guess.

Do Kwon Gets 15 Years

Judge Paul Engelmayer didn’t hold back during sentencing. Over 300 victims sent in impact statements. Six people actually showed up to testify about losing their life savings. One guy said his wife divorced him over it, and his sons couldn’t go to college. Another victim is literally homeless now, wandering around Tbilisi after losing everything.

Kwon apologized in court. He called hearing from victims “harrowing” and said he replays what he could’ve done differently every single day. The judge wasn’t buying it. He specifically called out how Kwon told retail investors to stay in while people close to the project were getting out during UST’s final collapse. Called that behavior “despicable.”

Kwon has to serve at least half the sentence before he can ask to transfer back to South Korea, where more charges are waiting. He also had to give up $19 million as part of his plea deal.

Where Does LUNA Go From Here?

Terra’s still down more than 98% from before the crash. The token would need to multiply dozens of times just to recover a small chunk of what got wiped out. Could it happen? Sure, this is crypto. But nobody’s holding their breath.

The LUNA price surge happened because of two specific events that are now over. The upgrade’s done. Sentencing’s done. What’s supposed to push it higher now?

Some people point to ongoing work. There’s a v3.6.1 upgrade for Terra Classic coming on December 18 after passing community votes with over 99% approval. LUNC burns are still happening – they removed 1.57 billion tokens from circulation just last week. True believers say this proves developers haven’t given up.

Skeptics say nothing fundamental has changed. Terra lost its main purpose when UST died. LUNA 2.0 is basically just a governance token for an ecosystem that doesn’t really do much anymore. This rally looks more like people gambling on headlines than any real recovery starting.

Chart watchers are all over the place. Some think $0.24 is a hard ceiling. Others think if it holds support around $0.12, another run could happen. Honestly, it could go either way. This thing swings 20-30% in a few hours sometimes.

At the time of writing this article, LUNA is trading around $0.17. 

The Bigger Picture on Terra

Terra’s got one of the wildest stories in crypto history. It went from a top-10 token to basically zero in days. Do Kwon became an international fugitive using fake Costa Rican passports. Got caught. Now he’s going to prison for the next decade. Yet somehow people are still building on it, and the token still trades.

Is that impressive or just sad? Depends on who you ask. The LUNA price surge brought attention back, but attention isn’t the same as real adoption or actual growth.

If you’re thinking about buying, understand the risks are massive. This token can swing violently in any direction without warning. The project’s founder literally got convicted of fraud and is heading to prison. There’s an ongoing legal mess and a reputation that might never recover.

But crypto’s weird. Projects everyone thought were dead have come back before. Terra’s got working technology, developers who show up, and a community that won’t quit. That doesn’t mean it’ll succeed. It just means the story’s probably not finished yet.

Also Read: Layer 1 vs. Layer 2: What’s the Difference and Why It Matters

Why did LUNA surge over 100% this week? 

Two things happened close together. The v2.18 network upgrade went live on December 8 with real technical improvements. Then Do Kwon’s sentencing happened, and people were trading on speculation about what he’d get. He ended up with 15 years, more than prosecutors asked for. The combination pushed volume way up.

Is Terra actually recovering, or is this just hype? 

Development’s still happening with real upgrades going through. But the token’s still down over 98% from 2022. Most people watching this space think it’s event-driven volatility, not a fundamental recovery. Terra doesn’t have a clear long-term story beyond speculation right now.

What happens to LUNA now that Do Kwon is sentenced? 

Sentencing clears up one uncertainty, but Terra’s core problems haven’t changed. Kwon hasn’t been involved in the project for years anyway, so development will keep going. Price will probably depend more on technical factors and what Bitcoin does than anything Terra-specific.

Should I buy LUNA after this surge?

Terra’s extremely risky. This token can move dramatically in either direction with basically no warning. If you’re considering buying, only use money you’re completely okay with losing. Most legitimate advisors would call LUNA pure speculation, not an investment.

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Disclaimer:

Look, we’re just journalists reporting the news here, not your financial advisors. Everything you read above is for information purposes only. Crypto is wild, unpredictable, and can absolutely wreck your savings if you’re not careful. Never invest money you can’t afford to lose. Seriously, we mean it. Do your own research, talk to actual licensed financial professionals, and remember that past performance means absolutely nothing when it comes to future results. The crypto market can turn on a dime, and what’s hot today might be toast tomorrow. We’re not responsible for your investment decisions, good or bad. Trade smart, stay safe, and don’t bet the farm on anything you read on the internet, including this article.