ZoneBitcoin EditorialTo all the moonboys out there screaming out loud about all the shitcoins they discover "to the moon", here's a real use case, guys.
We're going to talk about LUNA 🌕.
You certainly must not have missed this grandiose rise of the LUNA token recently. An ascent such as Luna is officially in first place in the top 10 DeFi tokens in terms of marketcap and exceeds Avax.
Luna’s TVL (total value locked) has exploded as can be seen on DeFiLlama. TVL has reached a value of over US$23 billion. A new record.
Luna has just surpassed BNB Chain (yes, today, Binance SmartChain renamed itself ). Without much surprise, Ethereum keeps first place with 54%. market share.
🤩 It is today the second largest DeFi ecosystem in terms of TVL! This may surprise you but quite honestly Luna has been on investors' radars for quite a while now. It is also the implementation of very interesting protocols like Anchor Protocol and its APY on the UST stablecoin at 19% which is the most used protocol. It's completely logical, you'll tell me. Yes, I will answer you. An ecosystem that attracts users with really good projects, it is completely logical that it gains popularity and that its price increases.
We are – personally – delighted to finally see the light on the Terra blockchain. We had spoken to you regularly and we looked forward to this day.
Moreover, the LUNA price also increased by 30% this week (this is what often happens when the activity of a network increases). Moreover, the ANC token also increased by more than 70% last week.
Some special features to know about LUNA token
If you want to know more about LUNA, we wrote a more complete article on the Terra blockchain.
The Terra blockchain uses a two-token economic model. There is LUNA (which is volatile) and a stablecoin UST (indexed to dollars).
Every time $1 UST is created, $1 worth of LUNA is destroyed. The opposite is also true.
This correlation (and the name luna and terra precisely recalls the correlation between the earth and the moon) is what makes Terra Blockchain strong.
This actually indirectly reduces the circulating supply of stablecoin and always brings its price down to $1. You have to buy UST and destroy it to buy LUNA.
Similarly, as more LUNA is destroyed to create UST, then the circulating supply of LUNA decreases, which affects its price.
This relationship is well thought out (not unique in blockchain, other networks use this model) and it makes it possible to better regulate the mechanisms of supply and demand.
Moreover, Terra Blockchain recently announced that investment funds had come together to invest massively and deposit BTC to use as a reserve for the foundation. This then gives additional protection to the UST.
This would even make UST a prime stablecoin, as its reserve asset would be Bitcoin. This would be different from other stablecoins which are backed by USD dollars.
Final word on the increase in the price of LUNA
What is interesting about LUNA is that it follows a very healthy progression curve, which can be described as organic.
The network is deployed properly with protocols that know how to attract users with good rewards and incentives (typically with Anchor Protocol).
The token was recently listed on FTX Exchange this summer and is in the process of being listed on other platforms. It is especially on Binance that the trading volume is the largest.
Now it is the consolidation phase. It is also that of doubts. We can have the FOMO but be careful though. The trend is certainly bullish, but it would be a shame to enter at the wrong time.
As always, it is good to do your research before investing and carry out a little technical analysis, for example.
The network is still in the expansion phase. The big advantage is that it is very popular in Asia, a region strong in terms of the maturity of its users in terms of crypto use. Likewise, the team's commercial work is fantastic and its financing programs for project leaders are bearing fruit.
Now, we have to see how the LUNA behaves in uncertain black swan markets...The lunatics (that's what we call the LUNA holders) will tell you that it's to the moon, or nothing .
We want to believe them because we too have been lunatics from the start 😉
Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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