The Cryptocurrency market is currently facing a bearish blow, but the recent Crypto rally which saw a rally over the last two weeks did bring back positive hope.
Along with Bitcoin, Ethereum, and many other Cryptocurrencies, there were many altcoins that saw a pullback. Among those altcoins was Terra (LUNA) which slightly retreated at the end of this week after witnessing some gains.
LUNA saw a leap of 5% after it hit a record high of $119.10. The Terra (LUNA)’s price rally can be the result of the growing popularity of UST and Terra Blockchain as a DeFi platform.
DeFi Growth Fuels LUNA Rally!
The community’s efforts to maintain liquidity are the result of an increased DeFi popularity. At present Terra stands as the second-largest DeFi blockchain by total value locked which is $21 billion.
Meanwhile, Terra’s Anchor Protocol (ANC) which is the biggest protocol on the chain, has offered the biggest yields in DeFi which surged by 20%. In order to mint UST, the Terra community often burns LUNA in order to reduce LUNA’s overall supply and push its price. As per Terra Analytics data, three million tokens have been burnt in the past five days, reducing Luna’s supply to a record low of 351 million tokens.
Terra To See Massive Bitcoin Purchase
As per Etherscan data which was shared by Larry Cermak, today, the Luna Foundation Guard (LFG) sent $231 million worth of Tether to Binance
The Terraform Labs co-founder, Do Kwon has informed that the LFG wallet has added Bitcoin reserves this week where the firm bought 4,000 coins for a total of 129,218 Bitcoin.
If Terra completes a $10 billion allocation, then it would be able to purchase approximately 184,800 Bitcoins.