Technical analysis also revealed that LUNA’s most recent price movement placed the token above a key support level identified around the $80-$82 region. Although the significant jump in price signaled gains for Terra’s token holders, LUNA remains more than 30% away from its $120 all-time high.
Historically, the market caps for cryptocurrencies grow as prices increase and Terra’s governance token was no different. CoinMarketCap data showed that the crypto’s market cap gained over 17% as over $5 billion followed into Terra.
As of the time of writing this report, Terra’s native crypto boasts a market cap of $32.15 billion. Its closest competitor is Cardano’s ADA with its $31.54 billion market capitalization.
Terra’s UST Rises As Crypto’s Third Largest Stablecoin
LUNA’s surge on Tuesday follows a key landmark moment in the world of blockchain-powered currencies. UST, the algorithmic stablecoin for Terra’s ecosystem, unseated Binance’s BUSD as the third-biggest stablecoin in the crypto space.
UST is different from other stablecoins as the token is supported by a reserve denominated in Bitcoin, Avalanche, and other digital assets.
The Luna Foundation Guard, a non-profit organization that exists to aid Terra’s growth and ensure UST’s peg to the US Dollar, holds some 42,000 BTC in the stablecoin’s reserve. The LFG also purchased $100 million worth of AVAX for the same reserve.
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