Terra’s LUNA outperformed the wider crypto market with a 17% bump in the past 24 hours, pushing prices to over $90 in Asian hours on Tuesday.

LUNA pushed past the $80-$82 mark, a pivot support level, to as much as $92.07 during early Asian hours. Profit-taking saw prices fall to $89 at writing time, another support level for the token. The move comes after a nearly 37% drop in the first two weeks of April following lifetime highs of $120 earlier this month.

Luna

LUNA jumped to resistance at over $90 this morning. (TradingView)

LUNA is a governance token for money market protocol Terra. The spike comes as Terra's algorithmic stablecoin UST toppled Binance USD (BUSD) to become the third-largest stablecoin by circulation, during the later hours of Monday.

Terra also became the largest buyer of Convex’s CVX token over the past 30 days with over $17 million in purchases, according to research firm Delphi Digital.

Convex is a protocol that allows users to earn fees without locking their CRV, the token of the decentralized lending project Curve. Fees earned on Terra’s deposits are distributed among Terra users.

Stablecoins are cryptocurrencies pegged to fiat currencies, usually the U.S. dollar, with each token backed by an equivalent amount of fiat in reserve. Algorithmic stablecoins like UST take this one step ahead and can be backed by a basket of assets, such as bitcoin (BTC), without depending on any centralized third party to hold those assets.

In February, major crypto funds led by Jump Crypto invested $1 billion in the Luna Foundation Guard (LFG), a Singapore-based nonprofit that aims to maintain UST’s peg by purchasing several assets as reserve backing.

LFG has since purchased bitcoin, Avalanche’s AVAX, other stablecoins, data shows, with Terra also donating 10 million LUNA, worth $890 million at current prices, last week. The reserves currently sit at $2.48 billion at the time of writing, with 69% held in bitcoin.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead. 

More Bitcoin News
GIGA investor loses $6M to phishing scam via fake Zoom link

GIGA investor loses $6M to phishing scam via fake Zoom link

On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.

More Cryptocurrencies News
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.

More Cryptocurrencies News
BNB: Bullish technical pattern validated, eyes all-time high

BNB: Bullish technical pattern validated, eyes all-time high

Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.

More Binance News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP