The price of LUNA is on the rise! In just 24 hours, Terra’s LUNA has outperformed other cryptocurrencies with a 17% bump. The bump has brought LUNA up to prices over $90 on Tuesday.
After testing support levels around $80, LUNA moved up to early highs of $92. With profit-taking in place, we will keep our eye on the day’s support and resistance levels as LUNA increases trading volume. But first, if you haven’t checkout our latest post on crypto wallets and blockchain technology go check those out and come back to this one to understand more about this stablecoin.
Terra’s Coin LUNA
With the rise of cryptocurrencies, new coins and tokens have been hitting the market. One of the most promising and innovative projects is LUNA. This stablecoin is making waves with its anti-inflationary and algorithmic protocol. The token was recently listed on Binance’s exchange. It quickly rose past $5 per coin into the top three most circulation stablecoins. The spike came as Terra’s UST hit brick walls during Monday evening hours. Climbing to third place while dropping Binance USD (BUSD), thanks to their innovative approach towards managing money supply through sustainable growth models.
LUNA’s success is due to its unique approach to stablecoin creation and management. The coin is backed by a reserve of other cryptocurrencies, which helps to keep it stable. In addition, LUNA supply is algorithmically managed to avoid inflationary pressure. This makes LUNA one of the most promising stablecoins on the market today.
Terra’s UST is close to LUNA in terms of stability and circulation. The coin is backed by a reserve of other cryptocurrencies, but its supply is not algorithmically managed. This means that there is potential for inflationary pressure in the future. However, Terra’s team is working on developing a new protocol that will help to address this issue.
It looks like Terra has liked Convex’s CVX tokens, and Terra’s not going anywhere anytime soon. According to research firm Delphi Digital, the largest buyer of CVX over 30 days with $17 Million in purchases.
Users of the Curve project will have an opportunity to earn fees without locking up their CVX tokens. All fees earned will be distributed among Terra users with Terra’s deposits.
What is Stablecoin?
Stablecoins are a cryptocurrency that is pegged to an asset with a stable value, such as the US dollar. Each token is backed by an equivalent amount of fiat currency in reserve. Algorithmic stablecoins like UST take this one step ahead and can be supported by a basket of assets, such as bitcoin (BTC), without depending on any centralized third party to hold those assets.
Why do we use stablecoins?
Stablecoins offer the benefits of cryptocurrency with the stability of fiat currencies. They are often used to store value or as a medium of exchange. For example, if you are paid in US dollars but want to hold your value in a stablecoin, you can convert your dollars to a stablecoin. Or, if you’re going to buy an item priced in another currency, you can use a stablecoin to pay for it.
Although, this news was short lived and took a dump only weeks after this post, you can follow our latest post on cryptocurrency and the use of blockchain technologies which aren’t going anywhere. To read on our Blockchain in supply chain article click here.