LUNA, the native cryptocurrency of the Terra network, fell by 9% over the last day. It is suggested that LUNA is still reeling from the crypto crash earlier in May. The price charts are also indicating a turbulent month ahead with worrying data further letting down investors.
LUNA seems to be stuck in a slump and is unable to get out of it. The Terraform Labs were all joys after purchasing $1.5 billion worth of Bitcoin to bolster their stablecoin, UST’s reserves.
Interestingly, the last time they bought $1 billion in Bitcoin, BTC topped $48,000 for the first time since late December. And, consequently, LUNA hit an all-time high.
In this context market strategist, Joel Kruger of LMAX Group said,
“The corporate buying of bitcoin can greatly influence the value of the currency and the space itself. With more demand from institutions comes added liquidity and longer-term interest, while validating the asset class at the same time.”
What is going on with LUNA?
This time, however, it was not the case as LUNA slumped to a new low. At the time of writing, the RSI of LUNA was moving sideways around the index value of 30. This is a worrying signal for the LUNA community who were ecstatic about the developments this year.
Terra steams forward
Despite LUNA losing momentum, Terra is launching the developments as planned. Terra’s governance proposal 721 recently stated “UST interchain expansion must continue to new realms” and “the Terra community pool should enact [UST-aaS with Ondo] to further utility.”
Ondo Finance launched a multi-chain UST liquidity for DAOs on Avalanche, Binance Smart Chain, Polygon, and Fantom. With the proposal accepted, UST-aaS is opening up new avenues of opportunities for Terra.
With UST-aaS, token issuers increase the liquidity of their token on decentralized exchanges across multiple blockchains. UST-aaS enables projects to safely and cost-effectively obtain UST liquidity without having to conduct a raise or sell holdings.
As LUNA continues to slip away, Terra Labs is trying to steer the ship away from the macro-economic turbulences.