LUNA: UST’s demand, burning rates, and what they mean for the alt

ambcrypto.com:

The stablecoin space is an intriguing one for investors right now. For many, Terra remains a top pick.

Algorithmic stablecoin network Terra and its LUNA token registered an impressive rally over the past few days. After hovering around the $50-level last week, LUNA exploded to trade close to $89, at the time of writing – A gain of approximately 50%.

In the last 24 hours alone, Terra surged 19% higher, leading all the top-10 cryptocurrencies as far as gains are concerned.

According to Smart Stake, LUNA burned more than 29 million for 21 days, signifying the increasing demand for UST. The total supply has increased from 11,256.43 million on 9 February to 12,942.91 million, an increase of nearly 15%. In fact, popular journalist Colin Wu tweeted about this milestone too.

Source: Wu Blockchain

The aforementioned graph pointed towards one key concept – To mintUST, more and more LUNA was burned.

For further context, consider the following – Decentralized stablecoins are used as risk-on assets during drawdowns while there is rotation from decentralized to centralized stablecoins due to peg risks. Furthermore, there is a stark difference now with stablecoins like UST considered as safe-havens.

In fact, while the larger crypto-market was down by 25%, UST’s supply surged by 28% over the past 60 days.

In addition to this, Terra accounted for more than 10% of DeFi’s total value locked, at press time. According to the DeFi Llama tracking platform data, Terra now has a share of 10.96% (~$23B) in DeFi’s cumulative TVL.

Finally, social activity on LunarCrush seemed to underline a promising scenario too. LunarCrush’s metrics reiterated the same as well.

Galaxy Score™ 65/100 AltRank™