The Terra network’s native cryptocurrency, LUNA, has dropped by 9% in the last day. It’s possible that LUNA is still struggling from the May 2021 crypto crash. The price charts also point to tumultuous weeks ahead, with more troubling data disappointing investors.
LUNA appears to be caught in a rut and unable to break free. Terraform Labs seemed overjoyed after purchasing £1.22 billion in Bitcoin to bolster the reserves of its stablecoin, UST.
BTC surpassed £38,900 for the first time since late December the last time the crypto fintech firm acquired £0.81 billion in Bitcoin. As a result, LUNA reached an all-time high.
However, such was not the case this time, as LUNA fell to a new low. The RSI of LUNA was going sideways around the index value of 30 at press time. This is a concerning indicator for the LUNA community, which was absolutely delighted with the progress made this year.
Despite the fact that LUNA is losing steam, Terra is proceeding with its plans. “UST interchain expansion must continue to new realms,” Terra’s governance proposal 721 stated recently, and “the Terra community pool should enact [UST-aaS with Ondo] to further utility.”
DeFi firm Ondo Finance has launched UST liquidity for DAOs across multiple chains, including Avalanche, Binance Smart Chain, Polygon, and Fantom. Terra will have new opportunities with UST-aaS now that the proposal has been accepted.
Token issuers can boost their token’s liquidity on decentralised exchanges across different blockchains with UST-aaS. UST-aaS allows projects to get UST liquidity in a safe and cost-effective manner without having to raise or sell holdings.
Terra’s market cap has dropped dramatically over the last two days as a result of the mid-sized correction. LUNA has dropped to ninth place in the global cryptocurrency rankings, with a market capitalisation of £20 billion.
LUNA has a 24-hour trading volume of £2.01 billion as of press time.