Terra Luna Classic (LUNC) experienced a dramatic price surge of approximately 24% on February 27, 2026, reaching a high near $0.00004905. This rally occurred despite a relatively flat broader crypto market, with Bitcoin hovering around $67,000. The sharp increase has been attributed to a combination of significant token burns and renewed market attention stemming from a major lawsuit.
Massive token burns have been a primary driver of the rally. According to Luna burn metrics, around 32 million LUNC tokens were burned on the day of the surge, contributing to a weekly total of approximately 224.46 million tokens burned. To date, about 85.58 billion LUNC tokens have been burned, representing nearly 19% of the total supply. This community-driven burn mechanism has been a key factor in attempts to restore confidence in the token since the Terra ecosystem's collapse in 2022. Accompanying the price surge was a 466% increase in 24-hour trading volume, which reached roughly $74.3 million.
The legal catalyst for the renewed interest is a federal lawsuit filed by Terraform Labs' bankruptcy administrator against trading firm Jane Street. The suit, filed in Manhattan, alleges that Jane Street used non-public information to execute profitable trades that intentionally triggered the depegging of TerraUSD (UST) on May 7, 2022. This event led to the historic collapse of the Terra ecosystem, erasing nearly $40 billion from the crypto market. The lawsuit claims Jane Street engaged in market manipulation and front-running.
Analysts note that the legal narrative, rather than fundamental improvements, is fueling the price action. Ryan Lee, chief analyst at Bitget, stated the lawsuit has "thrust one of crypto's most infamous collapses back into the spotlight" and has "reignited trader sentiment around accountability and potential compensation." Derivatives data shows open interest climbing from $100 million to $160 million, with futures' cumulative volume delta plummeting—a signature sign of a short squeeze in play.
Some traders are positioning on the belief that positive developments in the case could shift market perception or unlock value for legacy holders. However, Lee cautioned that the ultimate legal outcome remains uncertain, and any setbacks could temper enthusiasm. Despite the strong rally, LUNC remains dramatically below its all-time high of approximately $117.
