Is LUNA a token worth buying after Terra bought $135 million in Bitcoin for the UST Stablecoin Reserve?

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luna has gained 10% today

Terra (LUNA) is a blockchain network that specializes in the process of stablecoin creation. 

The main way through which this blockchain network stands out is due to the fact each Terra stablecoin is convertible into the LUNA token. 

LUNA is the native cryptocurrency token for the blockchain that allows holders to pay for the network fees, participate in the governance process, and stake in the Tendermint Delegated Proof of Stake consensus mechanism.

The $135 million Bitcoin purchase as a catalyst for growth

Terra LUNA/USD has recently blown up in value after Do Kwon, who is the co-founder and CEO of the company, confirmed that they had purchased over $1 billion in Bitcoin since the end of January. 

The latest purchase was of $135 million worth of Bitcoin (BTC) tokens that occurred on Monday, March 28.

Do Kwon specifically said that the Bitcoin address used by the Luna Foundation Guard out of Singapore was used to buy the cryptocurrency and even announced that the UST stablecoin would be backed by a reserve of Bitcoin (BTC) which could reach $10 billion in value.

Additionally, Do Kwon also tweeted on March 22 that they had $3 billion in funds ready to buy assets to back the stablecoin.

Should you buy Terra (LUNA)?

On March 29, 2022, Terra (LUNA) had a value of $102.8.

luna usd 1

The all-time point of the Terra (LUNA) token was on March 29, 2022, when the token reached a value of $105.91. This means that at its ATH, the token was just $3.11 higher in value or by 3%.

When we go over the performance of the previous month, Terra (LUNA) had its lowest point of value on February 3, 2022, when it decreased to a value of $47.33.

Its highest point of value was on February 28, when the token reached a value of $85.4. Here we can see the early signs of the token’s growth when it increased by 80% or by $38.07 in value.

With all of this in mind, at $102.8, the LUNA token is still worth buying as it can pass its previous ATH point and increase to $110 by the end of April 2022.

The post Is LUNA a token worth buying after Terra bought $135 million in Bitcoin for the UST Stablecoin Reserve? appeared first on Invezz.

from Market Analysis – Invezz

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