Terra (LUNA) is gaining 162% while the price of Bitcoin and Top Altcoins is falling
Bitcoin price seems to have misled traders because it rose to $ 42,000 final week and tried to remain above the $ 38,000 mark for the time being. Meanwhile, altcoins with robust fundamentals and actual world functions are on the rise.
Terra (LUNA), a blockchain protocol that powers the fiat-linked stablecoin TerraUSD (UST), is one of the initiatives that has resisted Bitcoin’s downtrend and has risen larger since early August.
LUNA price desk | Source: Tradingview
Data from TradingView reveals that LUNA’s price rose 162% from $ 5.53 on July 20 to $ 14.56 immediately, while its 24-hour trading quantity rose from $ 137 million to 774 Million {dollars}.
Three causes the elevated curiosity in LUNA is the quickly rising ecosystem, the inclusion of a packaged type of ether in the Anchor Protocol, the introduction of ether staking rewards into the Terra ecosystem, and the change’s tokenomics technique to maintain the management circulating provide with LUNA and UST.
Growing ecosystem attracts new market entrants
One of the clearest indicators of acceptance of the Terra ecosystem is the quickly rising listing of companions and initiatives launched on the Terra blockchain.
Terras ecosystem | Source: Smart Stake
The rising ecosystem offers entry to some of the hottest areas in the crypto house, together with decentralized finance (DeFi) and non-fungible tokens (NFT), in addition to bridges to networks, different blockchains like Ethereum and Solana. Terra additionally helps a number of retail and cost protocols that permit owners to make use of LUNA and UST for each buy per day.
Terra at present provides stablecoin help for 17 fiat currencies, together with US {dollars}, euros, and Canadian {dollars}, and plans so as to add to this listing as the ecosystem grows.
Anchor Protocol votes so as to add ether as safety
The ongoing vote so as to add packaged ether to the Anchor Protocol platform for UST minting is believed to be one of the causes for the price hike.
A suggestion to listing bETH (wrapped stETH on Terra) as safety for @anker_protokoll has been submitted????️
This will permit customers to borrow UST in opposition to staked ETH collateral and earn liquidity mining rewards with the secured lending of Anchor.https://t.co/ThQrW9PGyc pic.twitter.com/C1DGLhqQZL
– Lido (@LidoFinance) August 2, 2021
This will allow users to borrow UST against staked ETH collateral and earn liquidity mining rewards with anchor collateral lending.
The integration takes place via a partnership with Lido, a staking protocol for Ethereum and Terra, which enables Stkern to receive stETH (Staken Ethereum) and bLUNA (bonded LUNA) tokens.
If the vote goes through, Ether will be the first collateral option to earn staking rewards from outside the Terra ecosystem, and this is expected to bring the overall value of the log to a new all-time high.
Burn LUNA while traders take advantage of UST arbitrage
The third reason for the increased demand for LUNA has to do with the tokenomics of the protocol and the use of LUNA for UST coinage.
In order to create a new VAT, a corresponding amount of LUNA must be burned, which affects the offer and the price of LUNA.
As established platforms like Mirror Protocol grow and require more USTs to launch the platform, and new protocols roll out on the Terra network, increased demand is likely to trigger price dynamics for LUNA and UST.
A higher demand for UST often drives the price above $ 1 and this leads to arbitrage opportunities for holders who can buy $ 1 from LUNA on the exchange and burn it for 1 UST via Terra Station, even though the current UST price is $ 1.10 could.
This mechanism is the new way UST enters the market, and it also ensures that the protocol maintains a fixed price of $ 1.
Last 7 days from $ Luna Burning in greenback worth ????
Compared to the present price,
$ 41.95 million value $ Luna is burned in simply 1 week. ????Imagine what occurs when all venture buildings go stay ????.$ bEth about to go stay @anker_protokoll. $ Anc ✅
LGMI???? pic.twitter.com/brcafuNc8w
– Simon.! (@ Sim0ndv) August 2, 2021
“The value of the Luna dollar has been burned for the past 7 days
At its current price, LUNA burned $ 41.95 million in just one week.
Imagine what happens when all the projects under construction go live. bEth will go live in the Anchor Protocol. “
As seen in the tweet above, by the time the new UST was minted last week, the circulating supply of LUNA had decreased, which had a positive impact on the LUNA price.
The addition of ether as a collateral option, combined with a growing stablecoin supply sector and new protocols being rolled out on the network, are likely to result in a further spike in the LUNA price.
Teacher
According to Cointelegraph
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Terra (LUNA) is gaining 162% while the price of Bitcoin and Top Altcoins is falling
Bitcoin price seems to have misled traders because it rose to $ 42,000 final week and tried to remain above the $ 38,000 mark for the time being. Meanwhile, altcoins with robust fundamentals and actual world functions are on the rise.
Terra (LUNA), a blockchain protocol that powers the fiat-linked stablecoin TerraUSD (UST), is one of the initiatives that has resisted Bitcoin’s downtrend and has risen larger since early August.
LUNA price desk | Source: Tradingview
Data from TradingView reveals that LUNA’s price rose 162% from $ 5.53 on July 20 to $ 14.56 immediately, while its 24-hour trading quantity rose from $ 137 million to 774 Million {dollars}.
Three causes the elevated curiosity in LUNA is the quickly rising ecosystem, the inclusion of a packaged type of ether in the Anchor Protocol, the introduction of ether staking rewards into the Terra ecosystem, and the change’s tokenomics technique to maintain the management circulating provide with LUNA and UST.
Growing ecosystem attracts new market entrants
One of the clearest indicators of acceptance of the Terra ecosystem is the quickly rising listing of companions and initiatives launched on the Terra blockchain.
Terras ecosystem | Source: Smart Stake
The rising ecosystem offers entry to some of the hottest areas in the crypto house, together with decentralized finance (DeFi) and non-fungible tokens (NFT), in addition to bridges to networks, different blockchains like Ethereum and Solana. Terra additionally helps a number of retail and cost protocols that permit owners to make use of LUNA and UST for each buy per day.
Terra at present provides stablecoin help for 17 fiat currencies, together with US {dollars}, euros, and Canadian {dollars}, and plans so as to add to this listing as the ecosystem grows.
Anchor Protocol votes so as to add ether as safety
The ongoing vote so as to add packaged ether to the Anchor Protocol platform for UST minting is believed to be one of the causes for the price hike.
A suggestion to listing bETH (wrapped stETH on Terra) as safety for @anker_protokoll has been submitted????️
This will permit customers to borrow UST in opposition to staked ETH collateral and earn liquidity mining rewards with the secured lending of Anchor.https://t.co/ThQrW9PGyc pic.twitter.com/C1DGLhqQZL
– Lido (@LidoFinance) August 2, 2021
This will allow users to borrow UST against staked ETH collateral and earn liquidity mining rewards with anchor collateral lending.
The integration takes place via a partnership with Lido, a staking protocol for Ethereum and Terra, which enables Stkern to receive stETH (Staken Ethereum) and bLUNA (bonded LUNA) tokens.
If the vote goes through, Ether will be the first collateral option to earn staking rewards from outside the Terra ecosystem, and this is expected to bring the overall value of the log to a new all-time high.
Burn LUNA while traders take advantage of UST arbitrage
The third reason for the increased demand for LUNA has to do with the tokenomics of the protocol and the use of LUNA for UST coinage.
In order to create a new VAT, a corresponding amount of LUNA must be burned, which affects the offer and the price of LUNA.
As established platforms like Mirror Protocol grow and require more USTs to launch the platform, and new protocols roll out on the Terra network, increased demand is likely to trigger price dynamics for LUNA and UST.
A higher demand for UST often drives the price above $ 1 and this leads to arbitrage opportunities for holders who can buy $ 1 from LUNA on the exchange and burn it for 1 UST via Terra Station, even though the current UST price is $ 1.10 could.
This mechanism is the new way UST enters the market, and it also ensures that the protocol maintains a fixed price of $ 1.
Last 7 days from $ Luna Burning in greenback worth ????
Compared to the present price,
$ 41.95 million value $ Luna is burned in simply 1 week. ????Imagine what occurs when all venture buildings go stay ????.$ bEth about to go stay @anker_protokoll. $ Anc ✅
LGMI???? pic.twitter.com/brcafuNc8w
– Simon.! (@ Sim0ndv) August 2, 2021
“The value of the Luna dollar has been burned for the past 7 days
At its current price, LUNA burned $ 41.95 million in just one week.
Imagine what happens when all the projects under construction go live. bEth will go live in the Anchor Protocol. “
As seen in the tweet above, by the time the new UST was minted last week, the circulating supply of LUNA had decreased, which had a positive impact on the LUNA price.
The addition of ether as a collateral option, combined with a growing stablecoin supply sector and new protocols being rolled out on the network, are likely to result in a further spike in the LUNA price.
Teacher
According to Cointelegraph
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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