Terra network native token; LUNA recorded a drop in its supply to an all -time low (ATL) on Tuesday.
Analysts described this as a positive indicator proving that the crypto project is gaining attention despite concerns about how far it can survive.
Based on the attention of data tracker, Smart Stake, the supply of LUNA in the current cycle has dropped sharply from 355 million in the previous month to 346 million.
Meanwhile, in November 2021, Terra reached the highest number of 482 million LUNA.
While coins available in the market and not to be locked for stacking purposes have slipped below the 90 million LUNA level for the first time in the history of the Terra project.
What will happen?
On April 5, the crypto market saw the price of LUNA soar to an all -time high (ATH) at a record $ 119 following a large movement and a sharp reduction in LUNA supply.
Perhaps the latest data from Smart Stake shows the potential for LUNA to reclaim its previous position.
Anyway, LUNA is still tied to UST because of its feature that keeps the value of UST equal to $ 1.
When UST is worth over $ 1, LUNA will be burned to produce UST. Likewise conversely if UST demand is low and causes the price to fall below $ 1, the stablecoin will be burned for LUNA yields.
To date, UST has reached a market value level of over $ 18 billion from $ 2 billion last year. Where not, the presence of the Anchor protocol at Terra brings good luck with the offer provided - 19.5% annual return.
Even so, it is conditional. Investors need to get LUNA before burning it to get more UST.
At the time of writing, LUNA posted a trading value, $ 89.82, up over 1% in 24 hours.
