The crypto market has witnessed a massive selloff on Friday morning, with all the top altcoins posting red candles in solidarity with Bitcoin and Ethereum. Terra’s primary token LUNA, which traded in the green yesterday after testing $74 support early on Wednesday, has taken a hit on its way to $90.
Still, it has stood out from the rest of the crypto assets for the larger part of the week. Prior to today’s plunge, it was the only coin among the top ten with positive figures in daily and weekly gains. The pair has the lowest losses (among the top 10) in 24 hr and 7-day time frames with 4.10% and 2.45%, respectively, as of writing. Outside the market, Terra’s ecosystem is in pursuit of more growth.
Luna Foundation Guard launches to support ecosystem
The Luna Foundation Guard (LFG) launched this Wednesday as a non-profit organization based in Singapore. Via a press release, the institution said it intends to back and sustain the development of open-source tech towards a new decentralized financial system.
The homepage of the newly founded LUNA Foundation Guard
To achieve that, the non-profit’s first goal is to grow reserves intentioned at preserving its UST stablecoin‘s peg, especially during periods of market volatility.
LFG will receive an initial offering of 50 million LUNA from Terraform Labs (TFL) to fund its planned activities set to advance the Terra ecosystem. The entity explained that it intends to avail grants for projects within Terra in areas including research, open-source development, and community growth.
However, its primary focus will be to facilitate projects with high demand for Terra’s algorithmic UST stablecoin and pursue a path towards decentralized money.
“The LFG mandate to continuously support the peg stability of Terra’s stablecoins and ecosystem development powered by Terra’s best builders offers a new pathway for the growth and sustainability of decentralized money. A decentralized economy needs decentralized money, and LFG provides another nexus of resources to achieve that goal,” Terraform Labs CEO Do Kwon said.
LFG also revealed that it would come up with educational programs to promote awareness of blockchain technology. It will also maintain transparent communication with its community on projects and activities in progress.
TerraUSD (UST) circulating value exponentially growing
Data from crypto insight and analytics platforms Messari shows that the circulating value of TerraUSD has swelled over 50% in the last months. The dollar-pegged stablecoin had a circulating value of $2.78 billion at the start of November 2021. This figure surged and crossed $7 billion by the third week of November.
TerraUSD circulating market value. Source: Messari
Since then, it has increased by over 54% to the current value of $11.06 billion. Terra’s UST stablecoin presently ranks fourth in market cap among its peers. Tether leads the way with a market capital of $78.38 billion, followed by USD Coin, which is approaching $46 billion. Binance USD is third with $14.36 billion, while Dai is fifth with $9.75 billion. Though the disparity at the top is eye-catching, the margins are tight down the table.
Terra (LUNA) market performance
LUNA has dropped to $78.40 in a broader market slump that has effaced billions from the sector’s overall market capital. The coin has seen approximately 4% of losses in the last 24 hours and is now trading 24% below its December high.
LUNA/USD trading chart. Source: Coinmarketcap
Market analysts believe the mid-week rally was partly spurred by the formation of the LUNA Foundation Guard. The news around Binance activating LUNA deposits on its trading platform also potentially fueled the run.
LUNA/USD has continued showing strength and resilience amidst a generally bearish mood in the cryptocurrency market. Though the coin’s upside momentum is under threat, a further uptrend is on the cards. Bulls will likely attempt to push the price up and reclaim $82.50 heading into the weekend.
To learn more about this token visit our Investing in Terra guide.
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