Terra has, in addition, bought a record amount of Convex tokens (CVX) in the last month, the research by Delphi Digital established.
Terra’s LUNA has outdone larger and more famous cryptos with a huge surge of 17%, which pushed its price to USD 90 on Tuesday (Asian Hours).
LUNA blasted past the USD 80-USD 82 mark, a pivot support level, and moved further up to USD 92.07 in the early Asian hours of Tuesday. The move comes at a time when LUNA recorded a huge drop of close to 37% in the first two weeks of April after reaching a high of USD 120 earlier in the month.
LUNA Becomes the Largest Stable Coin in Morning Asian Hours Tuesday
LUNA is a governance token for funds market protocol, Terra. The price uptrend follows Terra’s algorithmic stablecoin UST surpassing Binance USD (BUSD) to become the 3rd largest stablecoin in the morning hours.
Over the last 30 days, Terra also emerged as the largest buyer of Convex CVX tokens. Delphi Digital, a research firm, reported that Terra purchased CVX worth USD 17 million.
Convex is one of the rapidly growing protocols that allow users to earn a fee without having to lock their tokens. Then, the fees earned on the platform are distributed to users.
Algorithmic Coins are Backed by Assets
Stable coins are cryptos whose price is pegged to fiat money, mainly USD. Then, each token is backed with an equivalent of the same amount kept in reserve. Now, Algorithmic coins take this a step ahead by allowing users to back them with other assets, such as Bitcoin (BTC), based on the centralized 3rd party to hold the asset.
In February, top crypto funds, such as Jump Crypto, noted the potential of Luna Foundation Guard (LFG) and invested USD 1 billion. LFG targets to maintain UST’s peg by buying assets and using them as reserve backing.
LFG has already bought Avalanche AVAX, Bitcoin, and other stablecoins. Last week, Terra donated 10 million LUNA valued at USD 890 million at the current price. Their reserve now has USD 2.48 billion, with 69% of it in Bitcoins.