The price of Terra (LUNA) has managed to log yet another all-time high amid a massive Bitcoin buying spree
The price of Terra (LUNA) hit a new all-time high of $117.70 earlier today.
It is up more than 7% over the last 24 hours, according to data provided by CoinMarketCap.
LUNA is now the seventh-biggest cryptocurrency by market capitalization, surpassing Ripple-affiliated XRP once again. It is currently valued at $41 billion.
The governance token of the Terra network has been on a roll over the past few weeks amid Terra’s spectacular Bitcoin buying spree.
At press time, the official address of the Luna Foundation Guard (LGF), a non-profit organization established by Terraform Labs, holds roughly $1.4 billion worth of Bitcoin.
As explained by Terra co-founder Do Kwon, the main purpose of the reserve is to help to maintain the dollar peg of the TerraUSD (UST) stablecoin.
As reported by U.Today, Terra intends to increase its Bitcoin stash to up $10 billion, aspiring to become the biggest single-wallet holder of the largest cryptocurrency.
Kwon told cryptocurrency podcaster Laura Shin earlier this week that he expects the price of Bitcoin to shoot up in the future. In such a case, UST will continue maintaining its stability even if demand starts waning. However, he didn’t rule out a worst-case scenario, in which the price of Bitcoin trades significantly lower six months from now.
Terra’s UST remains the most popular decentralized stablecoin with a market cap of $16.5 billion.
After hitting a 2022 high of $48,086 earlier this week, Bitcoin is struggling to regain its bullish momentum. The flagship cryptocurrency is currently changing hands slightly above the $46,000 level on major spot exchanges.
Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE), and XRP are flat-lining at the time of writing.