The price of Luna (LUNA) has risen 162% in the last two weeks. Experts point to the fundamentals of the digital currency and the growing demand for the UST StableCoin as the main factors driving Luna’s price rise.
to the Report With the Bitcoin jumping to $ 42,000 and falling to the $ 38,000 range, the Quinn Telegraph, which has strong fundamentals and real-world applications, managed to make significant leaps.
Luna, the Terra Protocol digital currency, was one of those Altcoins that managed to grow well during the Bitcoin downtrend over the past few days. It is worth noting that Terra is responsible for supplying the UST Stable Coin.
Market data show that the price of Luna from July 20 (July 29) to August 3 (August 13) could rise from $ 5.53 to $ 14.51. The 24-hour trading volume of this digital currency has also increased from $ 137 million to $ 774.
The expansion of the Terra ecosystem, the addition of the Ethereum-backed token to the Anchor protocol, and the Luna token economy have paved the way for the growth of this digital currency.
The growing list of Tera partners and projects operating in Tera ecosystem is one of the most obvious signs of the increasing acceptance of this digital currency.
The expansion of this ecosystem will give users access to various popular digital currencies such as Decentralized Finance (DeFi), Non-Aligned Tokens (NFT) and connectivity to other Blockchain networks such as Ethereum and Solana. This blockchain also supports some payment domain protocols and micro-user protocols. These protocols allow users to use Luna and UST in their daily payments.
Terra currently supports 17 Fiat currencies, including the US dollar, the Canadian dollar and the euro, and plans to add other currencies to the list in the future as it grows.
Adding ether to the anchor
Voting to add a Wrapped Ether token to the Anchor protocol is another factor that has pushed up Luna’s price.
The addition of ether to this protocol took place after the participation of Terra and Lido. Lido is a shareholding protocol for Terra and Ethereum that allows shareholders to receive their share rewards in the form of stEther (Ethereum Shared) and bLUNA (Guaranteed Luna).
If voting leads to the addition of Ethereum to the protocol, ether will be the first digital currency outside of your ecosystem to receive a reward for its extraction in this ecosystem. It is expected that after the approval of the addition of ether to this protocol, we will see the breaking of the record of locked assets.
Luna token burning
The Luna token economy is such that Luna tokens are used to create UST, and this is one of the factors that experts say has accelerated the rise in the price of this digital currency.
Luna is burned to create UST, equivalent to UST value. This will affect the supply of Luna tokens and, consequently, the price of this digital currency.
With the growth of platforms such as Mirror Protocol, the need to create a UST to advance project activity increases. On the other hand, the new protocols offered on Terra will increase the price of UST and Luna.
Increased demand for the UST pushes the price above $ 1. Holders of Luna, on the other hand, can buy UST for $ 1. People who buy UST for $ 1 can sell their UST for more.
This mechanism creates new USTs and enters the cycle. That way, each UST always has $ 1 backing.
As you can see in the image above, with the arrival of new USTs on the market, the lunas in the cycle have decreased and this has a positive effect on the price of this digital currency.
In addition to the above, many projects will be launched on Tera soon, and more demand for the UST Stable Coin could push up Luna’s price.