Terra’s LUNA Just Break a New Record After $1.3 Billion Bitcoin Purchase ⋆ ZyCrypto

Terra LUNA Sees Highest Percentage Of Fanfare Activity Since October — Emerges As Best Performer Of The Week

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LUNA, the native cryptocurrency of the DeFi-centric Layer 1 blockchain protocol Terra, has soared in the past 24 hours, breaking a new record of nearly $110 thanks to the broader crypto market resurgence and the Luna Foundation’s Bitcoin accumulation. Guard (LFG).

Terra’s LUNA sets another record high

LUNA is in tears.

The fast-growing token is up more than 10%, reaching a price of $109.66 for the first time today, breaking the previous high of $104.73. LUNA is currently the world’s eighth most valuable cryptocurrency with a market cap of $38.5 billion.

LUNAUSD Chart by TradingView

Since then, it has declined slightly to settle at about $108.37 at press time. However, it is still up about 8.7% on the day. This is a significant achievement as it traded around $70 at the beginning of the month.

Terra is a cryptocurrency network built using the Cosmos software development kit (SDK). The project has recently attracted a lot of attention thanks to the Luna Foundation Guard (LFG), a Singapore-based non-profit organization, which is buying bitcoin to stabilize Terra’s flagship stablecoin UST. On Monday, the LFG bought another $135 million worth of BTC in four batches.

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Terra continues to stack Bitcoin

Terra has become a persistent buyer of bitcoin. Do Kwon, the CEO of LFG and Terraform Labs, confirmed in a conversation with Bloomberg on Monday that the company had raised more than $1 billion in BTC since the end of January.

At the time of publication, the Luna Foundation Guard’s bitcoin address contains 27,784,96954740 BTC – equivalent to $1.32 billion at prevailing market prices.

Terra uses a dual token mechanism to keep its algorithmic stablecoin UST pegged to the US dollar. This means that Terra users must burn $1 worth of LUNA for every new UST minted. Without sufficient collateral, the stablecoin risks crashing. This is why LFG is accumulating BTC in its reserve fund.

“The reason we are particularly interested in Bitcoin is because we believe it is the strongest digital reserve asset. UST will be the first proprietary internet currency to implement the Bitcoin standard as part of its monetary policy,” Kwon explained earlier this month.

According to the Korean entrepreneur, the plan is to increase LFG’s Bitcoin reserves to $3 billion with a long-term goal of creating a $10 billion fund. LUNA is likely to explode further as LFG continues to buy bitcoin.

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