It’s interesting how LUNA held its position firmly when the rest of the crypto market was plunging. The crypto which is Terra’s native token has now emerged as the best performing asset last month, while the performance of other top tokens, mainly bitcoin and Ethereum, in the same period were around 12.25% and 9%, respectively.
LUNA thus made it to the top 10 cryptocurrencies overtaking other popular cryptos like Shiba Inu, Dogecoin, Litecoin and more, strengthening the long term viability of crypto project Terra. LUNA gained a current market value of over $34 billion, with a 76% growth in price this week, and this is probably how it was done.
LUNA is low on supply
The Terra community agreed to “burn,” or permanently remove 29 million LUNA tokens worth $2.57 billion from circulation. In doing so, the community pool created a scarcity of the asset, which could have boosted its price.
Terra’s new plans for LUNA
The protocol launched RoboHero, a Metaverse game for smartphones based on the LUNA token, which may have attracted mainstream investors to the crypto.
Terra introduced reserves in bitcoin
LUNA’s gains coincided with another announcement that Terra’s stable coin, TerraUSD would be backed by a $1 billion in bitcoin reserve. For many crypto enthusiasts, the introduction of a reserve in the popular crypto may have increased a sense of safety for investors.
Terra flipped Ethereum in staking
Staking is a method of earning passive income by holding cryptocurrencies. Typically, third parties lend a holder’s crypto to other investors or use the coins for blockchain activities. And LUNA is currently the second largest staked token, overtaking Ethereum’s ُETH. So far, the total staked amount in LUNA is 319 millions, which accounts for LUNA’s increase in market value.
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