Unlike most large-cap coins, LUNA’s price rose more than it fell in the last quarter. LUNA has come a long way from being a mere random name in the top 50 list to being almost part of the top 10.
LUNA price chart | Source: Tradingview
Oddly enough, the market cap of this altcoin rose from less than 1% to over 4.5% in just a few hours. Overall, this is an indication of a changed mood among market participants. This means that LUNA is expanding in the huge crypto space.
Logically, such spikes usually don’t last long. So it will be interesting to see if LUNA can turn the game around?
LUNA price (gray) and market capitalization (green) | The source: Messari
Aside from the dominance aspect, it is undeniable that LUNA’s price increase process is natural. In fact, the Columbus 5 upgrade and the combined token burn mechanism are like positive catalysts that are changing the altcoin’s token economy for the better.
LUNA’s stock-to-flow (S2F) model has increased significantly so far. For example, in the last four weeks the index rose from 18 to 20. Over the same period, LUNA’s inflation also fell from 5.52% to 4.99%.
Status of the statistics of LUNA | The source: Messari
Put simply, the S2F model quantifies scarcity by looking at parameters such as total supply and annual production. Higher values mean that less new supply is coming onto the market and thus lead to more scarcity, lower inflation. Apparently, LUNA’s circulating shipments also decreased by 2 million over the same period.
Price LUNA (gray) and Circulating supply (green) | The source: Messari
From the above factors it can be deduced that the long-term loyalty value of LUNA only increases over time.
Other important catalysts
Amid the ongoing NFT craze, LUNA players felt somewhat alien. However, they quickly found an in-house cure and shaped Galactic Punks – Terra’s first NFT collection.
Galactic punks are essentially 10,921 NFTs randomly generated on the Terra blockchain. In the initial minting alone, over 29,670 LUNA and 102,579 UST (Terra’s original stablecoin) were received. Actually, news The latest highlights from Spencer Noon that at the time the first block was processed, 132 punk had been minted, which indicates a “certain sign” of “enthusiastic interest” in the project mentioned.
More interesting, NFT K-Pop will appear on Terra in the near future. In addition, Hashed – one of the most successful crypto funds in the world – has acquired 2 game studios and plans to build its ecosystem on Terra as planned. notification officially. These developments prove once again the increasing acceptance of the Terra ecosystem.
Given LUNA’s token economy status and positive traction to date, it is fair to confirm that LUNA’s price is on its way to recovering in the long term. All in all, fans don’t have to worry much at this point.
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