While Bitcoin is making a strong recovery from the lows, LUNA is butting up against new all-time highs. What’s setting the Terra blockchain apart from the competition? Covered: LUNA Pumpamentals Massive Money Is Backing Terra UST If Luna makes a new ATH and saves the market then I will name my first born child Do […] The post Here’s How LUNA Is Breaking Away From The Competition appeared first on CryptosRus.

Here’s How LUNA Is Breaking Away From The Competition

While Bitcoin is making a strong recovery from the lows, LUNA is butting up against new all-time highs. What’s setting the Terra blockchain apart from the competition?

Covered:

  • LUNA Pumpamentals
  • Massive Money Is Backing Terra UST

If you’ve been in crypto for some time now, you’re probably well aware of Terra (LUNA), but for the newcomers, what’s all the fuss about surrounding LUNA? Why is it gearing up to break all-time highs in the midst of a Bitcoin bear trend?

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LUNA Pumpamentals

Terra’s native token LUNA is flying today, up 19% and trading at $101.51. Despite the long downtrend we’ve experienced in the crypto markets over the past few months, LUNA is one of the few tokens to brush off the dip like it never even happened.

One of the primary reasons we’re seeing such resiliency in LUNA is that its “pumpamentals” are in action. As part of the token’s Columbus-5 upgrade, LUNA tokens get burned as new UST, the protocol’s native decentralized stablecoin, is minted by users. This, as a result, creates a deflationary mechanism built into Terra’s design, and all it needs to work is demand from users.

Conveniently, as Bitcoin has dug the markets deeper into the red, more and more crypto investors are choosing UST as their stablecoin of choice amid uncertainty. Just look at the rate of UST growth since November (when Bitcoin peaked at $69,000), which just hit the $14 billion milestone yesterday.

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Massive Money Is Backing Terra UST

As you may already know, the Luna Foundation Guard (LFG) recently raised $1 billion in Bitcoin to use as a reserve for backing UST. This initial announcement was the spark that sent LUNA rocketing out of its downtrend, and today, it looks like LUNA is rallying yet again off the back of another $500 million raise from LFG.

Having a BTC backing makes UST the first partially-backed algorithmic stablecoin, but rather than being backed by a basket of real-world assets, as seen in centralized stablecoin competition, UST now maintains the $1 price tag with a backing of hard money alongside LUNA’s algorithmic pegging system.

Terra is standing out simply because it’s winning the crowd over. Just as people wake up to the importance of censorship-resistant money in Bitcoin, they are also waking up to the reality that an equally trustworthy stablecoin should be backed by the same stuff.

And UST isn’t just winning because “LUNA number go up,” it’s winning because the Terra blockchain is one of the few blockchains intertwining its technology into useful real-world applications. Between savings platforms like Anchor Protocol and the release of UST-linked credit/debit cards, Terra is getting used in the real world by real people, not just crypto-heads getting their hands dirty in the latest DeFi farming protocol. I’m not knocking on high yield DeFi, but I am saying that your average consumer has no idea where to begin with those platforms — Terra keeps it simple.

 

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