HT TECH wants to start sending you push notifications. Click allow to subscribe

Luna token climbs into the ranks of the largest cryptocurrencies; nears top 10 spot

Terraform Labs’ Luna token is climbing into the ranks of the largest cryptocurrencies amid changes in how the coin is used for its blockchain payments network.

By: BLOOMBERG
Updated on: Aug 21 2022, 22:16 IST
Luna price has jumped about 60% in the past seven days, according to pricing from CoinGecko,  (Stockphoto)

Terraform Labs’ Luna token is climbing into the ranks of the largest cryptocurrencies amid changes in how the coin is used for its blockchain payments network and optimism about the potential for decentralized applications. Luna has jumped about 60% in the past seven days, according to pricing from CoinGecko, making it the 12th-largest cryptocurrency with a market value of around $25 billion. The surge comes as Singapore-based Terraform is embroiled in a dispute with the U.S. Securities and Exchange Commission over whether the platform is selling unregistered securities. 

The Terra protocol deploys algorithmic, fiat-pegged stablecoins -- tokens that aim to link their value to an asset like the U.S. dollar -- to underpin a decentralized finance (DeFi) ecosystem. That ecosystem includes apps like Anchor, Pylon and Mirror Protocol. Terraform’s Mirror Protocol triggered the SEC probe by offering digital tokens mirroring U.S.-traded stocks.

You may be interested in

Mobiles Tablets Laptops
7% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
₹148,900₹159,900
Buy now
23% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
₹115,999₹149,999
Buy now
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
₹106,998
Check details
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage
₹87,900
Check details
21% OFF
Acer Swift Go SFG14 41 NX KG3SI 002 Laptop
  • Pure Silver
  • 8 GB RAM
  • 512 GB SSD
₹58,990₹74,999
Buy now
39% OFF
Acer Aspire 5 A515 57G Laptop
  • Gray
  • 16 GB RAM
  • 512 GB SSD
₹54,949₹89,999
Buy now
22% OFF
Acer Aspire 3 A315 24 NX KDESI 004 Laptop
  • Silver
  • 8 GB RAM
  • 512 GB SSD
₹33,499₹42,999
Buy now
39% OFF
Asus VivoBook 15 X515JA BQ322WS Laptop
  • Transparent Silver
  • 8 GB RAM
  • 512 GB SSD
₹31,490₹51,990
Buy now
34% OFF
Xiaomi Pad 6
  • Mist Blue
  • 6 GB RAM
  • 128 GB Storage
₹26,299₹39,999
Buy now
55% OFF
Lenovo Tab M10 5G
  • Abyss Blue
  • 6 GB RAM
  • 128 GB Storage
₹20,999₹47,000
Buy now
32% OFF
Realme Pad 2
  • Imagination Grey
  • 6 GB RAM
  • 128 GB Storage
₹19,790₹28,999
Buy now
Honor Pad X9
  • Gray
  • 4 GB RAM
  • 128 GB Storage
₹14,999
Check details

“Crypto is all about creating a buzz and there’s a lot of attention on the Terra ecosystem, be it for DeFi innovation, stablecoin products, a recent network upgrade or Luna staking,” said Antoni Trenchev, co-founder of crypto lender Nexo. It’s “the latest shiny thing in the crypto space, following in the footsteps of other blockchains like Solana and Avalanche, all which have witnessed explosive gains in the past year.”

A governance proposal for the network was recently approved to destroy, or burn, about 88 million Luna from the community pool, swapping it for UST, Terra’s stablecoin. UST itself now has a market value of $7.7 billion, compared with $2.9 billion on Nov. 10. Developers of cryptocurrencies often burn coins to increase scarcity. 

“Luna’s economics are built to be deflationary, and over the past month we’ve seen 100 million Luna tokens be burned, which removes them from supply forever,” said Hayden Hughes, chief executive officer of Alpha Impact, a social-trading platform. “This reduction in supply combined with the popularity of Luna staking (where staking participants get new tokens) has created a supply shock that has driven up the value.”

In addition many regulators globally, including in the U.S., have expressed interest in boosting the regulatory framework around stablecoins.

“Mostly everything we do as a company supporting the Terra ecosystem and third-party projects that build and develop creates more demand for UST, closing the ‘demand loop’ with many use cases for UST ranging from payments, to savings, and investing,” said Brian Curran, head of communications at Terraform Labs. “As a result, Luna’s price dynamics are mostly a function of the demand for UST, and by extension, the demand for using UST across various applications and blockchains.”

Luna may also be getting a boost as so-called cross-chain bridges like Wormhole have begun gaining traction and are allowing Terra to export UST to other blockchain networks where it’s supported. In addition, Terra has started some partnerships for Metaverse games, with names like Summoner’s War. Terra ranks fifth in smart-contract chains by total value locked, with around $12.6 billion, according to DefiLlama.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on ,Twitter, Facebook, , and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 02 Dec, 21:50 IST

Sale

Mobiles Tablets Laptops
4% OFF
Samsung Galaxy S24 Ultra
  • Titanium Black
  • 12 GB RAM
  • 256 GB Storage
₹129,999₹134,999
Buy now
7% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
₹148,900₹159,900
Buy now
13% OFF
Xiaomi 14
  • Matte Black
  • 12 GB RAM
  • 512 GB Storage
₹69,999₹79,999
Buy now
10% OFF
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage
₹80,590₹89,900
Buy now
38% OFF
Lenovo Tab M10 5G
  • Abyss Blue
  • 6 GB RAM
  • 128 GB Storage
₹20,999₹34,000
Buy now
28% OFF
Realme Pad 2
  • Imagination Grey
  • 6 GB RAM
  • 128 GB Storage
₹17,999₹24,999
Buy now
41% OFF
Lenovo Tab M9
  • Frost Blue
  • 3 GB RAM
  • 32 GB Storage
₹9,449₹16,000
Buy now
38% OFF
Samsung Galaxy Tab S8
  • Silver
  • 8 GB RAM
  • 128 GB Storage
₹52,990₹84,999
Buy now
38% OFF
Acer Aspire 3 A315 24 NX KDESI 004 Laptop
  • Silver
  • 8 GB RAM
  • 512 GB SSD
₹32,790₹52,999
Buy now
27% OFF
Infinix INBook X1 Neo XL22 Laptop Intel Celeron Quad Core 8 GB 256 GB SSD Windows 11
  • Blue
  • 4 GB RAM
  • 128 GB SSD
₹21,990₹29,990
Buy now
6% OFF
Acer Predator Helios 16 PH16 71 NH QJSSI 001 Laptop
  • Black
  • 32 GB RAM
  • 1 TB SSD
₹134,999₹142,999
Buy now
26% OFF
Asus TUF Gaming F15 FX506HF HN025W Laptop
  • Black
  • 16 GB RAM
  • 512 GB SSD
₹72,990₹97,990
Buy now
NEXT ARTICLE BEGINS