Terra’s LUNA cryptocurrency has surged to a new all-time high of $112, registering another 10% gain earlier today. At the time of writing, LUNA is trading at a price of $11.79 with a market cap of $39 billion.

Furthermore, Terra is also the third largest blockchain platform in terms of total value staked and ranks below Ethereum (ETH) and Solana (SOL).

The latest price rally in LUNA comes as the Luna Foundation Guard (LFG) made aggressive Bitcoin purchases in the month of Mach 2022. The LFG announced its plan to buy $10 billion worth of Bitcoin to ensure greater stability for the UST stablecoin.

After LFG made an aggressive Bitcoin purchase since mid-March, it has amassed more than 30,000 BTC in a very short time, according to on-chain data provider Glassnode.

With these aggressive purchases, Terra is very quickly approaching Tesla’s total Bitcoin holdings which currently stand at 42,902 BTC. In his recent podcast, Terra founder Do Kwon said he is willing to become the largest Bitcoin holder after Satoshi Nakamoto.

Do Kwon shares future plans with Terra LUNA

Speaking on the Unchained podcast hosted by Laura Shin, Do Kown shared why he decided to use the Bitcoin standard for the native UST stablecoin. Interestingly, he also projected Terra as a Layer 2 solution for Bitcoin.

But since LFG is aggressively buying Bitcoin, what if Bitcoin price crashes in the near future. In this case, it would certainly have a ‘negative’ effect on the value of UST. Kwon added:

The worst case scenario would be if we bought Bitcoin and a crash occurs six months later, and it’s correlated with a massive drop in demand for UST. […] My guess is that the long-term scenario of Bitcoin rising, with reserves strong enough to withstand the drop in UST demand, is the most likely scenario.

Kwon currently has an ambitious goal to make the UST the largest stablecoin in the world. Currently, it is the third largest stablecoin after USDT and USDC, and the 14th largest crypto by market capitalization. About this Kwon said:

Terra’s goal is to become the largest decentralized currency in crypto, period. The goal is not to become the largest stablecoin on the Terra blockchain, so we are expanding into the Solana, Avalanche, Ethereum and Polygon ecosystems. We intend to be everywhere developers and users are.


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About the author

Bhushan is a FinTech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.

This post Terra LUNA Hits All-Time High of $112, Founder Do Kwon Shares Future Plans

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