There is a new star in the crypto landscape and it’s called Luna. In a sprint-free week for bitcoin also complicit in the tensions on the markets related to the Omicron variant, to go into the spotlight is Luna, the token linked to the Terra blockchain. After having collected a 70% rise in the last 7 days, it is now the 11th largest cryptocurrency with a value of over 26 billion dollars; the Luna token thus continues to grind record successes and is climbing the ranks of digital currencies. In the last six months, Luna’s prices have increased tenfold from about $ 6 to the current $ 67.
The sharp rise in the native token of the Terra blockchain it is partly due to a reduction in supply, but there is also a lot of turmoil in the Earth ecosystem for decentralized finance (DeFi) and stablecoin products, as Antoni Trenchev, co-founder of Nexo, told Bloomberg.
The Earth protocol uses stablecoins (cryptocurrencies attempting to anchor their market value to an asset like the US dollar) to support the DeFi ecosystem which includes applications such as Anchor, Pylon and Mirror Protocol. Singapore-based Terraform Labs, the company behind the design of the Terra blockchain, is currently at odds with the U.S. Securities and Exchange Commission, U.S. Consob, on the grounds that the platform is selling unregistered securities.
The SEC recently announced that it has filed an action against Terraform Labs and co-founder and CEO Do Kwon, demanding that they comply with subpoenas for documents and testimony.