Terra (Luna)is up 17% in the last 24 hours and managed to push prices above $90 in Asian hours on Tuesday, outpacing the continuation of the crypto market.
LUNA pushed $80-82 as high as $92.07, a pivot support level in the early Asian region. Profit-taking prices have dropped to $89 at the time of writing, creating another level of support for this token. The move comes after a nearly 37% drop in the first two weeks of April, following highs of $120 earlier this month.
LUNA works as a management token for the money market protocol Terra. The spike is Terra’s algorithmic TOPIt came after coin topped Binance USD (BUSD) to become the third-largest stablecoin in circulation later Monday.
According to research firm Delphi Digital, Terra is the largest buyer of Convex’s CVX token, with over $17 million in acquisitions over the past 30 days.
Convex works as a protocol that allows users to earn fees without locking up their CRV, the symbol of the decentralized lending project Curve. Fees earned from Terra’s deposits are distributed among Terra users.
stablecoin‘s are crypto assets specifically referred to as “dollars” in crypto markets and pegged to a FIAT currency. As the name suggests, the price of these coins is fixed and for each minted coin, an equal amount of assets is held in reserve. Algorithmic stablecoins like UST take this a step further and can be backed by a basket of assets such as Bitcoin (BTC) without any centralized third party being tied to holding these assets.
Last February, major crypto funds led by Jump Crypto invested $1 billion in Luna Foundation Guard (LFG), a Singapore-based non-profit that aims to protect the stable of the UST by purchasing several assets as reserve support.
LFG has since acquired Avalanche (AVAX), Bitcoin (BTC) and other stablecoins, and Terra donated 10 million LUNA, worth $890 million at current prices, last week. Reserves are currently $2.48 billion at the time of writing, and 69% of that reserve is held in Bitcoin.
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