LUNA delivered a formidable bull run in February and March courtesy of Terra’s formidable plan to purchase Bitcoin price billions of {dollars}. The acquisition is a part of the crypto firm’s plan to construct a BTC reserve. LUNA could be on the blink of one other rally because of Binance’s new UST staking function which presents a gorgeous APY.
Binance not too long ago announced the launch of its high-yield UST staking function with an annual proportion yield (APY) as excessive as 19.63%. Such a excessive staking reward has the potential to set off heavy demand for UST by customers trying to benefit from the excessive staking yields. Such an final result will have an effect on the demand for LUNA as a result of UST mechanics within the Terra ecosystem.
LUNA is tied to Terra’s mint and burn mechanism which burns LUNA to mint the UST stablecoin. LUNA provide reduces because the demand for UST rises. Robust demand within the Binance staking ecosystem may yield such an final result, therefore making a optimistic impression on LUNA’s worth. The extent of demand that the cryptocurrency will expertise is straight correlated to the demand for UST.
LUNA achieved a brand new all-time excessive of $119.55 on 5 April after a formidable rally from its Q1 low of $47. The cryptocurrency has to date managed to keep at bay a serious worth correction largely courtesy of the Terra blockchain’s development and utility.
Supply: TradingView
LUNA registered a slight pullback yesterday after attaining its new ATH in the course of the earlier buying and selling session. Though the RSI reveals a decline within the bullish momentum within the final 234 hours, the Cash Circulation indicator suggests low promoting stress.
What on-line metrics inform us about LUNA
LUNA’s developer exercise metric on Santiment reveals that there was a noteworthy improve in exercise from 29 March to date. It not solely displays the actions aimed toward bringing UST staking to Binance but additionally different developments involving Terra’s anchor protocol.
The quantity of LUNA held by the highest wallets with greater than $5 million price of LUNA has been declining and is at present at its lowest degree since November 2021. We’re but to see a corresponding uptick within the high wallets in response to the newest developments.
