TL;DR Breakdown
- LUNA hits a new all-time high of $100.84.
- Terra’s TVL reaches $21 billion, extending its lead on BSC.
- Its circulating supply was cut by over 6 million in a week.
LUNA, the native token of the Terra ecosystem has hit the three-digit mark, after reaching an all-time high of $100.84 earlier today. The algorithmic altcoin has been soaring all month, even while the entire market was slumping. The altcoin is up by over 130% in a month and 55% in seven days.
The altcoin has been setting new all-time highs all week. Analysts were expecting a major sell-off after its previous ATH two days ago. However, investors have been massively confident in the altcoin, as more investments are being pumped into the Terra network. Just 4 days ago, Terra took over Binance Smart Chain (BSC), as the network’s total value locked surpassed $16 billion. Today, the amount reached $21 billion, extending the algorithmic blockchains lead to almost $4 billion over BSC.
LUNA burn continues at a strong rate
The reason behind LUNA’s continuous climb is its burn rate. Terra’s burn mechanism of the coin continues to build confidence among investors to HODL. The altcoin’s circulating supply was reduced by 117.52 million in a month. In the last 7 days, the circulating supply was reduced by over 6 million. As demand keeps increasing, the stable decline of its circulating supply is driving the altcoins price to new highs every day.
Terra previously announced that it will burn 88.7 million LUNA tokens, which will take place on every 800 blocks generated by the network. Unless we experience a major sell-off and profit-taking, the altcoins price will continue to grow as its TVL and burn rate suggests.
LUNA is currently trading at $99.58, during the time of writing. It’s up by over 15% in the last 24 hours.
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