Luna Adds $100 Million AVAX to Its UST Reserves
Earlier in the year, the LFG announced that it would work to build a reserve for its stablecoin, Terra (UST), by purchasing up to $10 billion in Bitcoin. Following a series of Bitcoin purchases in line with this goal, the LFG looked to make its first purchase of another cryptocurrency.
The LFG revealed that its $100 million purchase of the Avalanche (AVAX) token “marks the start of a diverse pool of layer one crypto assets helping support the $UST peg.”
According to Avalanche, the LFG decided to add AVAX to its reserve ahead of other Altcoins because of its “rapid growth and vast fan base.”
AVAX Rallies Despite Bearish Market
The news sparked a bullish day for AVAX, despite the bearish trend currently engulfing the broader crypto market. Over the last 24 hours, AVAX has rallied 6%, hitting a price of $89.65 from its daily low of $81.
The 24 hour price chart for Avalanche (AVAX). Source: Tradingview
Avalanche (AVAX) is now trading at $88.6295 at the time of writing, with its recent surge seeing the Altcoin claim 10th position in the largest crypto rankings, with a market cap of $23.8 billion.
On The Flipside
- As part of its recent rebalancing, Grayscale announced the addition of Avalanche and Polkadot to its ‘Digital Large Cap Fund’.
Why You Should Care
Luna is backing its UST stablecoin with other assets as a means to defend the Terra ecosystem against intense volatility and contractions in UST demand.