Despite the market trending to the upside, LUNA is still showing strength. Although there is a temporary increase in selling pressure this cryptocurrency has managed to reach uncharted territory. The price action also suggests that it could be heading for more upside.
Inside Terra’s $2.38 Billion Reserves, What Made The Lineup?| Inside Terra’s $2.38 Billion Reserves, What Made The Lineup?
The chart shows that LUNA is on an uptrend from August 2021. The LUNA dropped briefly to the $40 range, but then resumed momentum at $120.
LUNA is trading at $87, with a 4% profit on the 4-hour chart. LUNA hints that the moon is in sight as Bitcoin and other larger cryptocurrencies succumb to the market pressure.
The long-term fundamentals behind this cryptocurrency’s increase are still in place. Terra, the native cryptocurrency, has managed to draw new users thanks to its products.
Two sides of the same coin, LUNA, and Terra’s stablecoin UST have taken over the DeFi sector. Stablecoin recently surpassed UST to become the third most valuable in terms of market value.
Only USD Coin (USDC), and Tether(USDT) were able to surpass UST’s $17 Billion market capital.
The increase in market cap could be interpreted as another metric of Terra’s adoption. The ecosystem has attracted attention due to its Anchor Protocol and this project’s 19% annual percentage yield (APY) for staking UST.
Data from Token Terminal measuring LUNA’s transaction volume (in pink in the chart below) confirms the rise of the Terra ecosystem. In April 2021 this metric was at $50 million and reached a record high of nearly $3 billion.
The increase in this metric seems to be correlated with LUNA’s price with an important uptick in November 2021, when the network saw the implementation of important updates.
LUNA Can Sustain Its Rally With The Basics
As noted by a Terra user, the Anchor Protocol, probably one of the projects driven by LUNA’s current rally, continues to consolidate important partnerships and accessibility to different investment strategies. Recently, it announced deposits and withdrawals to the Mars Protocol’s Red Bank.
In addition, Anchor’s ANC was listed on Crypto.com, one of the largest crypto exchange platforms, as Terra increases its computability with other networks including Polkadot and Avalanche. The user noted this ecosystem’s milestones:
Anchor Protocol, Acala Network and Wormhole are integrated with Polkadot DeFi ecosystems to create the decentralized stablecoin markets. Hashed & Delphi Ventures co-lead seed round for Reactor Terra’s omni booster.
| Terra User Alert, Why NEAR May Launch Native Stablecoin at a 20% APR
Terra saw the addition of liquidity pools and new assets. Terra also witnessed the creation of Terra Global Founder Fellowship. Jump Capital, Hashed and Alpha Ventures support this initiative.
11🔸 @riskharborRe-deploy an Ozone V1 anchor $aUSTPool of protection. Capacity has been increased by 200M
12🔸 $UST is now available on https://t.co/Zeas4x8b3H Buy Crypto page. Additionally, $UST / $USDAnd $UST / $USDTTrade pairs are available now.
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— Helen | Everstake (@helen_everstake) April 18, 2022