Terra LUNA/USD is essentially this open-source blockchain platform intended to power algorithmic stablecoins, which are pegged against traditional FIAT.
LUNA is the native cryptocurrency token that powers the blockchain network.
The $1 billion raised through a private token sale as a catalyst for growth
On February 23, we covered how Terra claimed that they raised $1 billion in a private token sale.
This amount is intended to get used as a means of creating a UST Forex Reserve denominated in Bitcoin.
Keep in mind, however, that UST is a stablecoin that’s not backed by FIAT currencies but by Terra’s native cryptocurrency token known as LUNA.
This development has the potential to truly increase the value of the LUNA token going forward.
In fact, LUNA’s current price barrier that needs to be broken is at $60, and if it manages to do so, it can climb much further in value. However, if it dips under the $55 value point, then this could spell bad news for investors.
As such, we will go over an analysis of its recent price developments to get a better perspective of how this value can evolve.
Should you buy Terra (LUNA)?
On February 23, Terra (LUNA) had a value of $57.09.
In order for us to get a heightened perspective as to what this value point indicates for the Terra (LUNA) token, we will be going over the token’s all-time high point of value, alongside the performance it showcased throughout the previous month.
The all-time high value of the Terra (LUNA) token was on December 27, 2021, when the token reached a value of $103.34. This means that at its ATH, the token was $46.25 higher in value or by 81%.
Terra (LUNA) saw its highest price point on January 3, 2022, when it reached a value of $93.65.
However, its lowest point was on January 31, when the token saw a decrease in value to $43.58.
This gives us an indication that the token saw a decrease in value by $50.07 or by 53%.
However, from January 31 to February 23, LUNA saw an increase in value of $13.51 or by 31%.
With this in mind, we can expect the LUNA token to reach a value of $60 by the end of February 2022, making it a solid token to buy.
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The post LUNA price movement: can the $1 billion gained in a private token sale lead to an increase in value? appeared first on Invezz.
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