LUNA, Terra’s native cryptocurrency, remains on an upward trajectory. It is one of 10 best performing crypto coins in the top 10.
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While this trend is likely to continue, there are some warning signs. The long-term outlook is brighter.
At the time of writing, Terra’s cryptocurrency trades at $94 with sideways movement in the last 24 hours and 6% profit in the past week.
Do Kwon is a Terra Co-Founder and has quickly become a popular figure in crypto. Kwon, who is very active on social media platforms presented a bullish factor regarding the survival and long-term viability of LUNA as well as the Terra ecosystem.
According to Kwon, the crypto market will increase its demand for decentralized stablecoins, making Terra’s native stablecoin UST grow further. This stablecoin, like LUNA, has a burning mechanism.
Whenever the demand for UST increases, the mechanism burns LUNA to increase the stablecoin’s supply and vice versa.
UST, unlike its rivals, USD Coin and Tether (USDT), is not decentralized. Kwon repeated this point. It is therefore less susceptible to government censorship and external vulnerability.
This is probably the reason Kwon seems certain about UST’s future growth. Kwon has shared his thoughts via Twitter. said:
UST ‘s grew because its sovereignty is the only sensible model to scale decentralized money.
Terra native product Anchor Protocol offers UST holders the chance to earn a 19% APY. This was one of many reasons why UST stablecoin has seen a surge in popularity.
Within a short time, UST has risen to number 15 cryptocurrencies in terms of market capital and 4th place.ThStablecoin market share is the position. The entire Terra ecosystem can benefit if there is a continued demand for UST.
LUNA to Withstand Crypto Winter
The biggest concern about Terra and UST is Anchor Protocol’s capacity to sustain its APY, currently one of the highest in the market. Pedro Ojeda is a founder of SplitBrick. pointedTo protect Anchor, the stabilcoin minting mechanism has been created.
Luna staking yields stablecoins+Luna. You have a wonderful property. [ unlike ETH, BTC, AVAX etc whose staking return depends purely on coin price ] as Luna price drops, yield goes up naturally since (stablecoin+Luna)/Cheaper Luna = higher APR.
In the short term, Terra’s native crypto could face some hurdles to reclaim previous highs. Material Indicators (MI), data shows that only small investors are buying this rally.
Investors with orders in excess of $10,000 are limiting price action, keeping LUNA within a narrow range.
Bitcoin could become the currency of choice for future appreciation over shorter periods. If the benchmark crypto breaks above $43,000, LUNA (and other altcoins) could soon follow.
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BTC’s price faces its own difficulties with a TD Sequential indicator flashing a sell signal on the daily chart and with MI’s trend precognition pointing downwards on the same period.