Terra (LUNA) price has fallen 31% in the past four weeks, wiping out all gains for the year, and the token is struggling to stay above the $85 support level, despite outperforming 20% in the overall cryptocurrency market.
However, rising smart contract filings, as evidenced by rising TVL, and strong demand from derivatives traders point to a near-term price recovery.
According to statistics, Terra owners don’t care about the 31% price drop and focus more on growing the ecosystem compared to its competitors.
Terra (LUNA) one of the biggest whales in BTC
With the help of Genesis Trading and Three Arrows Capital, the Luna Foundation Guard has increased its bitcoin reserve fund.
The nonprofit, which was founded this year to back Terra’s stablecoin UST, revealed on Thursday that it had purchased an additional 37,863 Bitcoins, increasing its total Bitcoin reserves to around 80,394 coins. With a stock of just under $3 billion, LFG is one of the largest Bitcoin “whales” in the world.
Terraform Labs, the development activity of Terra, founded LFG in January to help the Terra ecosystem. Terraform Labs CEO Do Kwon said at the time that the company’s goal was to “continuously support the peg stability of Terra’s stablecoins,” along with other improvements to the Terra ecosystem. .
Luna Foundation Guard is closing in on its goal of raising up to $10 billion in Bitcoin to support algorithmic stablecoin US Terra, also known as UST, with this latest purchase. LFG purchased $139 million worth of BTC at the end of March.
According to CoinMarketCap, UST has become the most popular algorithmic stablecoin, with a market valuation of around $18.6 billion. Only Tether (USDT) and USD Coin (USDC) have higher circulating supply and market value.
The Luna Foundation Guard isn’t the only company buying Bitcoin in the news. MicroStrategy, a publicly traded trading analytics firm, continues to accumulate, regardless of Bitcoin’s price. The company increased its reserves by 4,197 BTC in April, bringing its total assets to 129,218 BTC.
