Terra’s (LUNA) price reached a new all-time high of $117.70 earlier today. According to CoinMarketCap data, it has increased by more than 7% in the last 24 hours.
LUNA has surpassed Ripple-affiliated XRP to become the seventh-largest cryptocurrency by market valuation. Its current market capitalization is $41 billion.
During Terra’s amazing Bitcoin buying spree over the last few weeks, the Terra network’s governance token has been on a tear.
At the time of publication, the Luna Foundation Guard (LGF), a non-profit corporation founded by Terraform Labs, had $1.4 billion in Bitcoin on its official address.
The reserve’s primary goal, according to Terra co-founder Do Kwon, is to assist maintain the TerraUSD (UST) stablecoin’s dollar peg.
Terra wants to grow its Bitcoin holdings to $10 billion, as previously reported, with the goal of becoming the largest single-wallet holder of the largest cryptocurrency.
Kwon told Laura Shin, a cryptocurrency podcaster, earlier this week that he believes the price of Bitcoin would rise in the future. Even if demand begins to wane, UST will maintain its stability in this circumstance. However, he did not rule out the possibility of a worst-case scenario in which the price of Bitcoin falls dramatically in six months.
With a market cap of $16.5 billion, Terra’s UST is the most popular decentralized stablecoin.
Bitcoin is battling to recapture its bullish momentum after hitting a 2022 high of $48,086 earlier this week. On major spot markets, the flagship cryptocurrency is currently trading slightly above $46,000.
At the time of writing, Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE), and XRP are all trading flat.