The price of Terra, LUNA hits its all-time high of $117.70 earlier today. As provided by the coin market cap, the Terra is up more than 7% over the last 24hours.
Luna is now the seventh-largest cryptocurrency by market capitalization, bypassing Ripple-affiliated XRP once again. Its current value is $41billion.
The governance token of the LUNA network has been on a roll over the past few weeks amid Terra’s speculation Bitcoin buying spree. At the time when the news was been written, the official address of the LUNA foundation Guard (LGF), a non-profit organization established by Terraform Labs, holds almost $1.4 billion worth of Bitcoin.
Do kwon Explain
As explained by Do Kwon, a co-founder of Terra, he said the main purpose of the hold is to maintain the dollar peg of the TerraUSD (UST) stablecoin. As reported by U.Today, Terra intends to increase its Bitcoin stash to up $10 billion, aspiring to become the biggest single-wallet holder of the largest cryptocurrency.
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Kwon told cryptocurrency podcaster, Laura Shin, earlier this week that he expects the price of Bitcoin to shoot up in the future. In such a case, UST will continue maintaining its stability even if demand starts waning. However, he didn’t rule out a worst-case scenario, in which the price of Bitcoin trades significantly lower six months from now.
Terra’s UST remains the most famous decentralized stablecoin
Terra’s UST remains the most famous decentralized stablecoin with a market cap of $16.5 billion. After hitting a 2022 high of $48,086 earlier this week, Bitcoin is struggling to regain its bullish momentum. The flagship cryptocurrency is currently changing hands slightly above the $46,000 level on major spot exchanges.
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Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE), and XRP are flat-lining at the time of compiling the news.
[…] this, we can deduce that LUNA and UST share a mutual […]