LUNA, Terra’s native token, is now the sixth largest cryptocurrency by market capitalization
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- a new all-time high
- Terra’s Stablecoin Reverses Shiba Inu
Terra’s native token LUNA has surpassed Ripple-affiliated XRP by market capitalization for the first time.
According to data from CoinMarketCap, the former is currently valued at $37.8 billion. Its price is up more than 27% in the past 24 hours, outperforming other major cryptocurrencies.
Cardano (ADA), Solana (SOL) and Avalanche (AVX) are also in the top 10.
a new all-time high
LUNA came under severe pressure in January, losing almost half of its value in a two-week period. Controversy over the Wonderland project contributed to bearish sentiment.
However, LUNA price has managed to make an impressive comeback over the past month, eventually reaching a new high of $103.88 earlier today.
The $1 billion LUNA sale organized by the Luna Foundation Guard in late February was a major shot in the arm for the cryptocurrency.
The TeraUSD (UST) stablecoin has gained 105% in value since the introduction of bitcoin-denominated forex reserves.
Terra’s Stablecoin Reverses Shiba Inu
Meanwhile, the market cap of the UST cryptocurrency has exceeded $14 billion for the first time. The dollar-pegged stablecoin is now above the Shiba Inu (SHIB), pushing the struggling meme coin to 15th position by market capitalization. The price recovery of the local LUNA token has boosted its supply.
The dollar peg of the UST is maintained with the help of elastic monetary policy. Some LUNA tokens are taken out of circulation with the help of the protocol’s burn mechanism in order to increase the supply of the UST stablecoin when it rises above the $1 mark (and vice versa).