LUNA +30.44% 7D as Network Improvements and Upcoming Sentencing Date Fuel Market Fluctuations

LUNA Experiences Sharp Price Fluctuations Amid Legal and Technical Events

On December 11, 2025, the value of LUNA dropped by 11.16% within a single day, settling at $0.1762. Despite this decline, the token had climbed 30.44% over the previous week and surged 141.55% in the past month, though it remained down 57.95% compared to a year ago.

Terraform Labs Founder’s Sentencing Sparks Market Uncertainty

The sentencing of Do Kwon, co-founder of Terraform Labs, has heightened speculation around LUNA. Kwon, who earlier admitted guilt to conspiracy and telecommunications fraud, avoided more severe charges such as securities fraud and money laundering. Prosecutors are seeking a 12-year sentence, a move that has divided investor opinion and added to the market’s unpredictability.

Although the sentencing has concluded, its aftermath continues to influence trader sentiment. The broader Terra ecosystem has seen renewed interest, as participants keep a close eye on potential regulatory actions that could impact the wider cryptocurrency sector.

Recent Network Upgrades Boost Short-Term Confidence

The launch of Terra’s v2.18 upgrade on December 8 has played a significant role in LUNA’s recent price momentum. This update brought enhancements to node efficiency, memory management, and improved compatibility with the Cosmos ecosystem. These technical improvements have been credited with fueling a 250% increase in LUNA’s value over the last ten days.

Meanwhile, the Terra Luna Classic (LUNC) network is preparing for its v3.6.1 upgrade, which has received overwhelming support from validators. The planned update aims to enhance smart contract functionality and modernize legacy systems, reinforcing the long-term outlook for both LUNA and LUNC chains.

Community Hype and Emotional Trading Drive LUNC’s Rally

Alongside LUNA’s gains, Terra Luna Classic (LUNC) has also staged a strong recovery. A viral moment on social media, featuring a CoinDesk reporter in a retro Terra t-shirt, reignited enthusiasm within the community and propelled LUNC’s price up by over 116% in one week. This surge underscores the powerful role of nostalgia and grassroots sentiment in the crypto market.

Additionally, accelerated token burning for LUNC has reduced its circulating supply, heightening the sense of scarcity and drawing short-term traders back into the market, especially on platforms where trading activity has spiked.

Legal Outcomes and Technical Progress Shape Market Direction

LUNA’s recent price movements reflect the combined impact of legal proceedings and ongoing technical upgrades. With the sentencing now behind, investors are reassessing their risk exposure. At the same time, recent network improvements and community-driven projects are providing a more positive outlook for long-term supporters and developers.

Experts caution that while the recent rally has been fueled by speculation and event-driven factors, the durability of these gains will depend on the resolution of legal matters and the continued success of technical enhancements.

Continued Volatility Expected for LUNA and LUNC

Both LUNA and LUNC have experienced notable price swings, prompting traders to remain vigilant. The combination of legal developments and technical changes has created a sensitive environment where market sentiment can shift quickly. As the Terra ecosystem evolves, achieving regulatory certainty and ongoing innovation will be crucial for attracting greater institutional participation.