Is LUNA worth buying after Terra votes to burn $4.5 billion in tokens?

By: Invezz

Terra LUNA/USD is a blockchain network that was built through the usage of the Cosmos SDK.

It specializes in the creation of stablecoins, and each Terra stablecoin is convertible into the network’s native token known as LUNA.

The $4.5 billion in tokens burn as a catalyst for growth

On October 26, the Terra Network announced its plans to burn over 9% of LUNA’s total supply

The upgrade on the network led to the TVL on the Terra network reaching new heights.

That said, on November 10, the community voted to burn 88.675 million LUNA tokens, which at the time equaled $4.5 million. 

After the proposal, which Terra’s co-founder put forward Do Kwon, passed, the tokens’ price shot up to new heights, and on November 8 reached an all-time high value of $54.77.

This vote meshed with the large plan laid out by the Columbus-t network upgrade in late September that changed how and when Terra burns tokens. 

Instead of transferring LUNA to a community pool, LUNA that got used to mint the Terra stablecoin would get permanently burned.

This has the potential to bring the LUNA token to a new all-time high value as a result.

Should you buy Terra (LUNA)?

On November 11, Terra (LUNA) had a value of $50.93.

To get a better perspective as to exactly what kind of value point this is for the token, we will be comparing it to it’s all-time high value as well as its performance in October.

On November 8, Terra (LUNA) reached its latest all-time high-value point at $54.77. From November 8 to November 11, we can see that the token decreased in value by $3.84 or by 7%.

In terms of the performance in October, on October 4, Terra (LUNA) had a value of $49.05, which was its highest point of the month.

The lowest point occurred on October 17, when the token fell to a value of $35.38. This gives us an indication that the token fell in value by $13.67 or by 27%.

However, from October 17 to November 11, the token has increased in value by $15.55 or by 44%.

With this in mind and the momentum gained from this burn, we can expect the LUNA token to reach a new all-time-high value point of $60 by the end of 2021, making it a solid purchase.

The post Is LUNA worth buying after Terra votes to burn $4.5 billion in tokens? appeared first on Invezz.

Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.