Terra (LUNA): A Good Time To Buy?
erra (LUNA), a blockchain used to launch algorithmic stablecoins, is currently among the top DeFi platforms when it comes to the total value locked in circulation. LUNA has been in an uptrend for the past few days, but gained even more momentum in the previous 48 hours. LUNA was among the top earners of the past week, closing with a 40% increase. Details are on Cryptoify.news.
Is it time to buy for Terra?
The news that the Luna Foundation Guard (LFG) has created a reserve in Bitcoin caused the markets to react positively. This will serve as an extra layer of stability and security for Terra USD , which is currently struggling with sharp price fluctuations due to the low liquidity situation in the exchanges . LFG has announced that it will invest $1 billion to build Bitcoin reserves. The US Treasury’s latest move to create a Bitcoin reserve has been met with criticism from analysts and experts.
As a result, this new development could reduce price fluctuations for the UST. UST is a stablecoin pegged to the US dollar through an algorithm. Unlike other centralized cryptocurrencies, it is not backed by anything but Luna. UST can be exchanged for LUNA if prices fall below $1 per token . Burning more Lunas means higher prices because there will be less total supply going into circulation. Terra’s introduction of a Bitcoin reserve can be seen as the next important step in reducing volatility in its ecosystem.
