Terra (LUNA) surged 75% with the removal of $2.57 billion worth of LUNA tokens last February. This development has also impacted Terra’s stablecoin UST, with its supply increasing close to 15% this month. With geographic conflicts and other negative effects on the crypto market, the best performing financial asset last February was Terra (LUNA)!
LUNA reached as high as $92 with a price increase of close to 75% this month. Meanwhile, the industry’s giant Bitcoin (BTC) shows a monthly increase of about 12%, while Ethereum (ETH) shows an increase of around 9%. LUNA leaves its bullish crown neither to these two giants of the industry, nor to other popular altcoins of the crypto market.
Star of February
Experts state that most of the gains LUNA made during February surfaced in the last days of the month. In addition, experts argue that investors should no longer view LUNA as a temporary port.
Smart Stake, a crypto analytics platform, says that the Terra protocol has recently burned 29 million LUNA tokens, equivalent to $2.57 billion. Thus, this increases the supply of not only LUNA but also TerraUSD (UST), a LUNA-based stablecoin, by about 15%, to 12.92 million. Investors consider the increase in UST supply to be a separate catalyst for LUNA. That is, as LUNA increases, UST increases, as UST increases, LUNA increases. Thus, whenever the value of UST rises above $1, LUNA is encouraged to burn more LUNA tokens.
Also, the Luna Foundation Guard (LFG), a non-profit charity, is announcing that it has raised $1 billion in LUNA tokens. LFG explains that it will use these proceeds to build the UST Forex Reserve, meaning an additional $1 billion increase in the supply of this stablecoin.
The LUNA Might Be $120!
While interpreting Terra’s chart, experts draw attention to the bull pennant and underline its upward progress. However, bull flags follow a descending momentum after their strong upward movement and then rise again. Experts state that LUNA is in the last stage of its bull pennant and says it will reach up to $120 with an ambitious forecast.
However, as of February 28, Terra (LUNA) is expected to have an upward performance against the dollar in the long term, and experts emphasize that LUNA is the most profitable altcoin among cryptocurrencies.
The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should perform their transactions in line with their own research.