There’s no stopping it.
With price action that has surprised absolutely nobody, LUNA just printed a new, all-time-high of $106. There’s no denying Terra’s ecosystem has had an unbelievable year, transforming from a promising concept, into to a fully-fledged juggernaut.
With UST adoption outpacing all stablecoin competitors throughout the year, it has now achieved a market cap of over $16 billion. The more UST is minted, the more LUNA is burned: and scarcity breeds value.
Do Kwon knows this as well as anyone. It’s partly why the Luna Foundation Guard (LFG) has been pursuing a Bitcoin Reserve for UST, with a view to creating a war chest so big as to make it, quite literally, impossible for UST to lose its peg. So far, they have purchased $1.3 billion worth of Bitcoin, with the latest $125 million buy coming yesterday. This has not only boosted BTC, but also confidence in the Terra ecosystem at large, since the potential for UST to lose its peg has always remained a potential concern. Do Kwon and LFG’s buying spree has pushed that problem, should it ever arise, down the road.
Thorchain, meanwhile, is on an absolute tear. It may not have printed a new all-time high just yet ($21 dollars, May 21’), but it’s inching closer. Just check out this chart.
Part of the reason behind RUNE’s explosive growth is a range of key developments in recent weeks, including the prospect of trading synthetic assets on the protocol, as well as its integration with TerraUSD. Native UST/BTC swaps are now live on the ThorChain.
Volume is exploding. The Total Value Locked (TVL) is also climbing:
- March 26 : $1B
- March 27 : $1.1B
- March 28 : 1.25B
There’s so much to be bullish about with ThorChain and RUNE, not least of which is the integration with Anchor Protocol.
In a tremendous thread, Bodi Pinkner explains why he believes RUNE may benefit from Anchor’s new dynamic earn rate in the wake of the recent Governance Proposal 20.
In short, the yield rate on Anchor May theoretically drop to 15% within the next five months, which might lead to some of the UST seeking a new home, with Thorchain’s recent integration with TerraStation a likely candidate, with its possibility of 32% APY.
Two of our favorite protocols have come together, and we couldn’t be more excited to see it happen. The combined potential of these two projects mind-boggling.
Questions for the community
- Which coin do you think will have a bigger run this week, LUNA or RUNE?
- Who is the biggest competitor to Anchor Protocol?