Currently about $114 per coin, LUNA price has risen by over 86,200% from all-time low of $0.121798 in March 2020. This makes LUNA one of the best performing tokens in the past two years. One year ago, Luna was about $18 per coin. Just a month ago, the price was $76 per coin. Seven days ago, the price was just about $90. This is according to Coinmarketcap.
What does Luna’s growth mean for both new and existing crypto investors? Amongst many others, one meaning is unmissable: Being able to identify a coin or token with value at the earliest stage is one of the major steps to maximizing opportunities provided in the ever-volatile crypto market.
Luna is the reserve currency of Terra, a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain.
The Terra Ecosystem
The Terra protocol runs on a Proof of Stake (PoS) blockchain whereby miners must stake their LUNA in order to mine transactions. All things equal, a validator who has staked more LUNA has a higher chance of generating the next Terra block compared to another validator who has staked less. In essence, LUNA represents a validator’s mining power.
Terra utilizes a basket of fiat-pegged stablecoins, algorithmically stabilized by LUNA to facilitate programmable payments and open financial infrastructure development. Unlike other stablecoins, price stability is combined with greater fiat-currency adoption with the censorship of bitcoin. By December 2020, the Terra network has transacted an estimated $299 billion for over 2 million users.
As the reserve currency of Terra, LUNA has three core functions: (i) mine Terra transactions through staking, (ii) ensure the price stability of Terra stablecoins, and (iii) provide incentives for the platform’s blockchain validators.
LUNA can be purchased from cryptocurrency exchanges such as Binance, Bundle, Bitget, AAX, etc.
LUNA Price Analysis: Historical price data since 2020 show promise.
In 2020, Luna’s market cap rose to $200 million after Terra introduced its DeFi and stablecoin projects. Therefore, the recent LUNA price surge after an announcement that Terra’s stablecoin, TerraUSD ( UST), will be backed by a $1 billion Bitcoin reserve, is expected to boost LUNA price sustainably. The announcement has profoundly changed LUNA’s investment thesis for many crypto enthusiasts, many of whom are taking a bullish view of this token in light of this announcement.
A number of investors believe that by introducing the $1billion bitcoin reserve, the project will become feasible over the long term. The introduction of bitcoin reserve provides for an increased margin of safety for investors, which is always a good thing. Considering the intense volatility we’ve seen of late in the crypto space, more stability is better than less. Right now, Terra’s UST token appears to be a winner for the network, with rising demand expected to impact LUNA positively.
Today LUNA price is $114.47 with a 24-hour trading volume of $$2,495,894,355. LUNA price is up 11.32% in the last 24 hours. It currently has a circulating supply of 353,730,185.43 and a total supply of 750,594,122.
LUNA entered a strong rally after touching the key support at $48 as shown on the LUNAUSDT weekly chart. In early December 2021, LUNA regained its price value. On 5 December 2021, LUNA hit the ATH of $77.14. On 27 December, Luna price hit another ATH $102.73. But before hitting a new all-time high (ATH), LUNA faced some pullbacks at lower timeframes.
LUNA’s growth has seen it surpass not only the two biggest meme coins, Dogecoin and Shiba Inu, but also Avalanche (AVAX) and Polkadot (DOT). Also, staking-rewards data from Coindesk show that LUNA has become the second largest staking asset in the world, surpassing Ethereum (ETH).
But it hasn’t always been only growth at Terra’s LUNA. In May 2021, LUNA price slumped by over 80 percent. This was due to a massive sell-off across the entire crypto market.
At the time of writing, LUNA has a market cap of up to $40.5 billion and ranked 8th largest cryptocurrency by market cap.
The cryptoassetbuyer, investor, or trader is advised to trade carefully. Always apply appropriate risk management, and take profits where possible. The bulls and bears are forever in battle. Hence, we continue to closely watch the market to see if it makes a move, whether green or red. Keep a close eye on the market with CAB’s Crypto Market Live page where you can view price changes of several thousands of coins and tokens live.