LUNA’s 50% increase in the last week has made it one of crypto’s most popular coins. Terra (LUNA), currently occupying seventh spot on Coinmarketcap with $34B in assets, has been making headlines for its rise to stardom. Not only did the token shoot up past Solana ($32B), but also Cardano ($31B), who sit eighth & ninth respectively now that their rankings have changed due to LUNA’s hipe.
LUNA is DeFi’s token. The real product, however, is stablecoins like UST which value it in dollars. It protects your wealth from volatility and helps you to avoid cryptocurrency price fluctuations.
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The UST market and LUNA are at a crossroads. The two stablecoins compete with one another for investors’ attention, but they also affect each other’s prices as well. Due to the unique algorithms of Terra, which encourage market agents and arbitrage opportunities, Terra will gain more USD-based traction than Terra based in crypto.
While there are many stablecoins out there, UST has the most decentralized. It is the fourth largest stablecoin with a market capital of $13 million. The other major hitters are all centralized. Tether with a $79 billion market cap, followed by Circles’ USDC$53 billion and BUSD ($18 billion)
Latest data from DefiLlama Terra nodes are responsible for 11.2%, or 11% of funds held in DeFi Space. It is quite impressive considering the $23 billion it holds compared to other platforms such as Fantom or Solana, which has less funding. Ethereum continues to be the leader, but they have 55 percent more invested than they do.
Terra (LUNA) Price Update
LUNA is one of the most exciting coins in recent months. But, the price movement has been quite different from what investors might expect in highly-correlated markets like cryptocurrency trading since January.
LUNA trades at $92.55, and has seen 24-hour highs close to $96.31 as well as lows of $89.21. The cryptocurrency is 7th on the crypto market, with a $34.5 Billion market cap. The market cap of the cryptocurrency could be diluted to $72 billion. This would provide a tremendous return on investment.
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LUNA is one of the most resilient coins in this crypto bear market, and according to Matt Hougan from Bitwise Asset Management, it’s on an “absolutely spectacular run” so far. It suffered less volatility than other coins, but it recovered faster.
The cost of LUNA has been on the rise. Analysts predict that it will reach $98 at the end of March.
Featured Image from Tradingview.com Flickr Chart