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LUNA, the native coin of Terraform Labs, is reaching new heights. Algorithmic altcoin is up 15% in the last 24 hours and 40% in 2 weeks. In a week LUNA was able to break historical highs, and now the new goal of the altcoin is the achievement of $ 100.
LUNA is now 9th largest cryptocurrency on the market, located just below the USDC stablecoin. After just 2 days ago, the coin rallied to its previous ATH of $ 81.08, analysts predicted that its price will fall as a result of profit taking and large-scale sales. However, investors are rewarded for their patience as the Terra engine helped the token soar above the $ 90 mark.
Why is LUNA growing?
Altcoin has been growing all month, while the entire cryptocurrency market has been falling. Terra has surpassed Binance Smart Chain (BSC) in TVL (total value locked), becoming the second largest DeFi network after Ethereum. Currently, $ 20.63 billion is locked on the Terra blockchain, which is almost 4 billion more than Binance Smart Chain.
This is the largest TVL Terra to date and indicates that investors are holding assets on the blockchain at all times. The burning rate of Terra token is also exceptional. LUNA’s turnover supply decreased by almost by 30 million a month, against the backdrop of growing demand on the network. This is a key factor behind the rise in the price per coin.
What’s more, Terra burns $ 4.5 billion in LUNA for every 800 blocks produced in order to simplify its economy and increase staking rewards. Based on this, we can conclude that these are the driving factors behind the recent incredible growth in cryptocurrency.
Earlier today, the token hit its latest all-time high of $ 97.90. At the moment, LUNA is trading at $ 95.21, but it is clear that the bar is $ 100 per token looks inevitable.
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