Known for its long-term volatility and for missing out on the 2024 bull market since early March, Terra Classic (LUNC) is once again drawing attention as the next U.S. court hearing involving Terraform Labs co-founder Do Kwon approaches on April 10.
LUNC’s decline can be traced back to May 2022, when the Terra ecosystem collapsed after its algorithmic stablecoin USTC lost its dollar peg and fell below $0.01.
The incident wiped out an estimated $60 billion in market value, triggering widespread panic across the digital asset space. The collapse of Terra is widely regarded as a major catalyst for the prolonged ‘crypto winter’ that followed.
Yet, despite major setbacks and ongoing legal fallout, the project persists, kept alive largely by its dedicated community.
Community burn efforts persist, but price impact remains modest
Part of this ongoing effort has centered around a community-led token burn mechanism, aimed at reducing the token’s oversupply and boosting long-term value.
Data shows that over 407.68 billion LUNC tokens have been burned to date, including 17.17 million tokens on April 9 alone.
However, the impact on price has been modest. At the time of writing, LUNC was trading at $0.0000555, reflecting a 1.46% daily gain and a modest 1.17% increase in market capitalization to $303.27 million.
Moreover,in a bid to address the aftermath of the collapse, Terraform Labs launched its Crypto Loss Claims Portal on March 31, 2025, allowing creditors to file claims until April 30.
This process is part of a structured wind-down that began after Terraform Labs filed for bankruptcy and settled with the U.S. Securities and Exchange Commission (SEC).
That said, while Terra Classic is not technically dead, LUNC is barely alive. Its price performance remains weak, volatility is high, and the deflationary token burns haven’t yet offset the psychological and financial damage caused by its collapse.
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