According to research, Terra has also purchased a record number of Convex tokens in the last month.
Terra’s LUNA outperformed the overall crypto market with a 17 percent increase in the last 24 hours, pushing prices to more than $90 (R1 338) during Asian hours on Tuesday.
LUNA surged past the pivot support level of $80-$82 (R 1190- R 1219) to as high as $92.07 (R 1368) during early Asian hours. Profit-taking caused prices to fall to $89 (R 1323) at the time of writing, another support level for the token. Following lifetime highs of $120 (R 1785) earlier this month, the price fell nearly 37% in the first two weeks of April.
LUNA is a governance token for Terra’s money market protocol. During the late hours of Monday, Terra’s algorithmic stable coin UST surpassed Binance USD (BUSD) to become the third-largest stable coin by circulation.
According to research firm Delphi Digital, Terra also became the largest buyer of Convex’s CVX token in the last 30 days, with over $17 million (R 252m) in purchases.
Convex is a protocol that allows users to earn fees without tying up their CRV, the decentralized lending project Curve’s token. Terra users receive a portion of the fees earned on their deposits.
Stable coins are cryptocurrencies that are pegged to fiat currencies, typically the US dollar, with each token backed by an equivalent amount of fiat on hand. Algorithmic stable coins, such as UST, go a step further by being backed by a basket of assets, such as bitcoin (BTC), without relying on a centralized third party to hold those assets.
In February, major crypto funds led by Jump Crypto invested $1 billion (R 14.9 bn) in the Luna Foundation Guard (LFG), a Singapore-based nonprofit that aims to keep UST pegged by purchasing a variety of assets as reserve backing.
According to data, LFG has since purchased bitcoin, Avalanche’s AVAX, and other stable coins, with Terra also donating 10 million LUNA, which is worth $890 million(R13.2 bn) at current prices, last week. At the time of writing, the reserves totalled $2.48 billion (R35.7bn), with bitcoin accounting for 69% of the total.