Avalanche And Terra Led Crypto Market Rebound To New Gains

Avalanche and Terra led the crypto market to rebound to new gains as the rest of the crypto market shows signs of recovery and make double-digit gains in the past day so let’s read more in today’s latest cryptocurrency news.

LUNA s the native cryptocurrency of the DEFI-centric layer 1 blockchain protocol TErra is among the biggest gainers and the value soared by 15% in the past day. The ninth biggest crypto in terms of market cap LUNA is changing hands at $57.23 but the token is still down by about 1% on a weekly level. LUNA’s gains seem to be supported by the news of the Luna Foundation organization that supports the Terra network and raised $1 billion via a token sale led by Singapore-based hedge fund manager Three Arrows Capital so according to LFG, the funds will be used to create a BTC-denominated UST Forex Reserve which is a financial vehicle described a release valve for the UST Stablecoin into LUNA.

LGF will be able to use the BTC reserves to stabilize the market in cases of sell-offs with Nicholas Platias who is the founder of Chronos Finance who claimed that the UST Forex Reserve is the primary counterargument for the sustainability of the algorithmic stablecoin is eliminated. In the meantime, AVAX has seen some strogn performance in the past day and flipped the Binance USD Stablecoin to become the 10^th biggest digital currency by market cap.

The data from CoinMarketCap shows that Avalanche and Terra led the market recovery as AVAX is up by 13% over the day to the value of just over $79. While not clear what’s behind the latest price action, AVAX saw increased demand from investors according to CoinShres. Avalanche was the second biggest performer behind BTC in the week ending February 21 with inflows into crypto supporting AVAX totaling as much as $25 million. The price of BTC on the other hand is up by 4.67% over the day with the leading crypto trading at $38,850. ETH is up by 6.6% over the same timeframe changed hands at $2712.

As earlier reported, The LUNA foundation guard which is a nonprofit organization linked to Terra claims that it has raised $1 billion in a private token sale and it says the money will be used for a UST Forex Reserve Denominated in BTC. UST is a stablecoin that uses Terra’s LUNA to maintain its peg and there has been a lot of money that entered into crypto recently with $100 million funding rounds becoming a common thing. A recent over-the-counter token sale however took it to another level.