Terras LUNA continues to rise and all eyes are on its price development to see if there is a new one soon ATH that surpasses the previous $ 78 level, fueled by the increased adoption of Terras DeFiEcosystem and the demand for its Stablecoin VAT. At the time of writing, LUNA / USD is trading at around $ 74.74.
The native token of theBlockchain is one of the few coins on the crypto market that is itself the market leader Bitcoin and . recorded weekly gains Ethereum Battle among key levels. The LUNA coin helps maintain the price stability of the stablecoins within the blockchain network, especially the Terra USD, which is experiencing significant demand from DeFi users. A higher demand for UST is driving the burning of LUNA tokens as algorithms work to keep the price of the stablecoin. The higher burn rate, in turn, drives the value of the LUNA. up coin.
One of the biggest developments helping LUNA’s rise is Defi Llama’s data, which shows that Terra has become the second largest ecosystem to support DeFi projects, after giant Ethereum in second place. With only 13 DeFi protocols currently on its network, Terra enjoys a DeFi TVL of just under $ 17 billion, a far better performance than Binance Smart Chain, which ranks third, and 222 protocols with a TVL of over US 16.5 billion – dollars supported. Another potential Ethereum killer Solana and Avalanche, both of which support other projects in this area, were unable to record TVL Terra’s strong increase in the past few days.
Terras LUNA saw its price skyrocket through the second half of 2022, having climbed to an ATH of over $ 78 after August when it traded around $ 10-11 and earlier this month. Over the past year, it has returned more than 14,000% worth of profits to investors, making it one of the top performing altcoins in 2021. In the past three months alone, Terra’s native token has seen nearly 200% in profits, with more DeFi users turning to the UST coin.
The LUNA token has skyrocketed in the last few weeks after the Columbus 5 upgrade to Terra since its community voted on a proposal to increase the burn rate. While most of the crypto market languishes after Bitcoin has slipped below the $ 50,000 mark, this token is on the rise after its community decided to sell LUNA worth $ 4-5 billion in the face of soaring demand for the UST -Burning stablecoin in the market.
LUNA / USD technical analysis
According to the CEO of leading crypto hedge fund Three Arrows Capital, Zhu Su, Terra’s LUNA has shown signs of “majestic strength” after trading in the green last month. He remains optimistic that this is not the time to be too pessimistic about the broader crypto sector, especially considering the bullish performance of the LUNA token lately.
On the LUNA / USD 4-hour chart, most of the moving averages, as well as the MACD, are pointing to a bullish bias. On the other hand, the momentum indicator also shows a certain presence of sellers in the market.
Terra’s LUNA holds above the pivot point at $ 69.74 ($ 69.74), and buyers have leeway to push the price past the current ATH and to new highs in the short term. The next interesting levels are just above the all-time high of $ 78 and then the immediate one resistance at $ 87.43.
Source: Crypto News Deutsch