LUNA Spikes: Is It A Good Time To Buy?

LUNA is a blockchain used for launching algorithmic stable coins and is now among the top DeFi platforms when it comes to total value locked up in circulation. LUNA has been trending higher over the last few days, but it gained even more momentum over the previous 48 hours. By closing 40% greater, LUNA was among this past week’s biggest gainers. Related Reading | Bitcoin Surges to $40,000 After Breaking Key Resistance The news that Luna Foundation Guard (LFG) created a Bitcoin-denominated reserve has caused markets to react positively. This will act as an extra layer of stability and security for Terra USD, which is currently struggling with sharp fluctuations in prices due to its low liquidity status on exchanges. LFG has announced that it will be investing $1 billion towards building up its Bitcoin reserves. The best part about this news? All of LFs’ coins are locked for 4-years, which means they won’t be able to trade until after those periods. This increases investor confidence across multiple platforms, including LUNA, with demand rising accordingly. Because investors look for safe-haven assets during these uncertain times. The recent move by the US Treasury to create a Bitcoin reserve is being met with rave reviews from analysts and experts. As a result, this new development should lower price fluctuations for UST. The Mechanism UST is a stablecoin fixed to the US dollar via an algorithm. Unlike ot...