LUNA continues to outperform its peers, with the token’s price increasing by more than 100 percent in the last two months.
Following the intensification of Bitcoin purchases to back the network stablecoin, UST, LUNA, Terra’s network native token, surged to $111.52 on Wednesday morning, breaking the previous all-time high of $104.83 established earlier this month.
The Luna Foundation Guard’s (LFG) plans to boost its Bitcoin (BTC) reserves relieved concerns about the impact of an increasingly hawkish Federal Reserve and the continuing Ukraine-Russia war on crypto markets, and Terra (LUNA) surged to its highest level to date on March 29.
The price of LUNA surpassed the previous high of $104.83 by 6%, reversing the losses suffered during the selloff between December 2021 and January 2022.
Terra token’s net capitalization has risen to $39.35 billion, accounting for 1.82 percent of the entire crypto market, up from 0.39 percent at the start of this year.
The LUNA Foundation Guard (LFG) announced plans to increase its Bitcoin reserves to $3 billion, with a long-term goal of growing the pool to $10 billion, which might lead to a spike in demand for UST, forcing more LUNA tokens out of active production permanently.
LFG’s plan to establish a Bitcoin reserve for UST is progressing well, with on-chain analytics revealing that they had already purchased nearly 31,000 BTC worth around $1.45 billion, which many believe is what sparked the LUNA token price rise.