It’s beginning to look like Terra blockchain crypto LUNA may just be the digital asset scene’s comeback kid. In a dramatic leap forward from a devastating crash several months ago, the Terra token tripled in price during trading hours last September 9th, hitting close to the all-time high it set when it was first introduced.
From less than $2.00, LUNA’s value jumped to nearly $7.00 and, as of press time, was trading within the neighborhood of $6.00. This marked gains of over 212% within a 24-hour period, and it was noted that trading volume was significantly higher than it had been over the past week.
Could a social media frenzy influence LUNA’s jump?
At the moment, many of those watching the cryptocurrency scene are wondering what precipitated this jump in LUNA’s value, seeing how there have been such significant developments regarding its parent blockchain that would stir buyers’ interest.
Many experts, however, feel that the speculative retail frenzy was ignited by recent discussions about the once-fallen token on several social media platforms, particularly Twitter and Facebook.
Since LUNA’s earlier collapse, the revitalized Terra blockchain has found it challenging to attract investors. Currently, Terra’s total value locked (TVL) stands at just $51 million – a measly amount considering that the original blockchain’s TVL hit a high of $20 billion in May of this year, mere weeks before the collapse.
TVL is a critical metric for decentralized finance as it measures how much value protocols stand to gain from investors.
High-risk assets are on an uptick
Last week appeared to be a good one for cryptocurrencies and other high-risk assets. Many were relief rallying in light of how many economic indicators show that the global economy is slowing down. Likewise, traders are looking into the possibility that the US Federal Reserve may slow down interest rate hikes or reduce interest rates as early as the first quarter of 2023.
The CoinDesk Market Index (CMI), a newly launched tracking system that keeps tabs on the prices of around 148 cryptocurrencies to gauge the overall performance of the digital asset sector, surged by 5.6% within a 24-hour period. Again, Bitcoin led the rally by jumping from $19,000 to $21,000, its highest daily gain in the last six months.
Likewise, the value of Terra’s luna classic (LUNC) token went up during trading hours as many traders expressed an interest in a new burn scheme expected to reduce its hyperinflated supply. However, LUNC’s rally appears to have slowed to a halt as its value has decreased by 17%.