LUNA Set New ATH After Latest $135M Bitcoin Purchase: Analysis

LUNA set new all-time high after the recent $135 million Bitcoin purchase and the CEO confirmed that they purchased over $1 billion in BTC since January so let’s read more in our latest altcoin news today.

Luna as the governance token behind the Terra network is leading the charge in the crypto market today. It surged by 10% earlier today to hit a new high of $106.14 as per the data from CoinMarketcap. The Luna price backtracked since then but it is still up by 9% over the day and traded around $103.48 at press time.

LUNA has a market cap of $36.8 billion and is ranked eighth biggest among the cryptocurrencies. It is one of the Terra native tokens which lists a selection of the decentralzied stablecoins. TerraUSD boasts a market cap of $16.2 billion and the most popular of them is the biggest decentralized stablecoin ranking before MakerDAO’s DAI. LUNA’s latest price relates to the news that the Luna Foundation Guard which is an NGO supporting the Terra network now purchased $135 million worth of BTC to back the UST stablecoin. The purchase of Monday came in four batches with the CEO of LFG and CEO of Terraform Labs Do Kwon, confirming that the firm purchased more than $1 billion in BTC since the end of January.

LFG’s BTC address holds 27784.9 BTC or $1.32 billion at current prices. LUNA set new ATH but unlike centralized stablecoins like tether, TerraUSD is not backed by the dollar. It is instead tied to the Luna token which means that once someone mints UST they have to burn LUNA. However, according to Kwon, a BTC reserve will help improve UST’s ability to keep the dollar peg:

“The reason why we are particularly interested in Bitcoin is because we believe that [it] is the strongest digital reserve asset. UST is going to be the first internet native currency that implements the Bitcoin standard as part of its monetary policy.”

LGF said that it raised $1 billion in a private token sale of LUNA with the funds being used for TerraUSD reserve in BTC.

Luna soared by another 9% and broke above $100 so the asset made new gains and hit $105 earlier today. Waves surged the most from the top 100 after a 60% increase in one day and as a result, Waves hit $50 with more gains coming from Loopring by 16%, ThorChain by 13%, and Compound by 14%. the crypto marekt cap increased slightly and now stands at $2,150 trillion.