Bonded LUNAIt has quietly outstripped Litecoin (LTC) and Chainlink (LINK) and currently climbs to #22 in the CoinGecko rankings.
LUNA works as the governance and equity token of the Terra blockchain, while BLUNA is the token representing staked LUNA and associated block rewards. BLUNA is tradable and transferable like LUNA, so it is traded on Terra’s decentralized exchange.
BLUNA is up 13.8% on the 7-day chart, despite losing 3.3% on the 24-hour chart. On the other hand, Litecoin (LTC) and Chainlink (LINK) suffered losses of up to 8.3% and 8.4%, respectively, on the 7-day chart. Terra (Luna) also posted gains of up to 15% on the 7-day chart.
Why BLUNA and LUNA Have Different Price?
Other BLUNA-specific issues add to the common cause of price inefficiency, causing LUNA/BLUNA pricing to differ between protocols.
for example Anchor ProtocolIn , the Bonded LUNA is priced higher than the LUNA. This is because BLUNA can be burned back into the LUNA after only 21 days (plus three days of processing time) after being tied and minted on the Anchor, unless there is an instant burn. And BLUNA is always more valuable than LUNA as it represents not only the value of the LUNA staked, but also the block rewards from betting during the 21-day lock period.
On the other hand, the price of LUNA can sometimes be higher than BLUNA, because more users are selling Bonded LUNA instead of buying it in DEXs. Another reason why LUNA is priced higher is that users don’t normally buy bond assets unless they need to use them as collateral.
At the time of writing, the Bonded LUNA was trading at $88.39, while the LUNA was trading at $89.14.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.