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Yesterday, Terra’s native cryptocurrency, LUNA, dropped by over 9%. LUNA is still recovering from the crypto-cash it experienced in early May. The price charts data show a stormy month ahead, a huge concern for investors.
It seems like the native token of Terra is going through a slump and is not able to come out of it. The Terraform Labs were excited to have bought Bitcoin worth $1.5 billion in order to strengthen the reserves of their stablecoin, UST.
It is also interesting to note that the last time when they purchased $1 billion in Bitcoin, BTC was trading at its highest, $48,000, in late December. As a result, LUNA reached its ATH.
LMAX Group’s Joel Kruger, a market strategist, regarding this context said: The value of the currency and the space itself, greatly influence the corporate buying of bitcoin. Added liquidity and longer-term interest come with more demand, at the same time validating the asset class.
LUNA: What Is Happening?
But, this time, this is not the reason why LUNA has dropped to a new low. The RSI of LUNA was traveling sideways around the index value of 30. It is a concerning signal for the LUNA community who were excited about the development this year.
Will Terra Delay Its Development Plans?
Terra has decided to not delay the planned developments despite LUNA losing momentum. The governance proposal 721 of Terra recently announced that the interchain expansion of UST must continue to new heights and [UST-aaS with Ondo] should be enacted to further utility by the Terra community pool.
Ondo Finance launched a multi-chain UST liquidity for DAOs on Binance Smart Chain, Polygon, Avalanche, and Fantom. UST-aaS will be bringing new opportunities for Terra as the proposal gets accepted.
Across multiple blockchains, token issuers expand the liquidity of their token on decentralized exchanges with UST-aaS. Without having to conduct a raise or sell holdings, UST-aaS allows projects to safely and cost-effectively obtain UST liquidity.
Terra Labs is trying to refrain from the macro-economic turbulence as LUNA continues to drop.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
