The price of LUNA hit $100 after a 15% intraday gain and near a record $106 reached in December 2021, the weekly low (WTD) is trading at $75.60.
More than 120 million LUNA have been burned.
Arthur Cheong, the founder of DeFiance Capital, hinted on March 9 that the LUNA price was rising due to Terra’s ability to take over $1 trillion or more of the decentralized stablecoin market space through its token-bound tokens. US Dollar TerraUSD (UST)
The total addressable market size for the de-facto decentralized stablecoin is at least a few trillion dollars.$LUNA
— Arthur
(@Arthur_0x) March 9, 2022
In particular, the supply of UST tokens isup to 1.4 billion on March 9, the highest level to date, according to Smart Stake. At the same time, the Terra protocol burned 120 million LUNA tokens.
The gimmick is that if the price of TerraUSD (UST) is above $1, the Terra protocol will burn LUNA and mints more stablecoins. Similarly, if the price of UST falls below $1, the value of LUNA will also fall due to the slowdown of the mechanism. burning
Thus, the rising supply of UST should also help boost LUNA’s price in addition to a broad recovery in the crypto market.
Terra TVL sets all-time record
Total value locked in the Terra protocol. moreFrom nearly $18 billion earlier this year to $25.58 billion as of March 9, the highest level to date. This includes all locked LUNA tokens from 215.80 million to 298.89 million during the same period.
Terra also became the highest staked asset among All cryptocurrencies with over $35.75 million worth of LUNA tokens are now locked on multiple platforms, according to Staking Rewards.
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