Luna Attracts New Admirers As Crypto Hot Bet

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The Luna token continues to hit record highs and is climbing the digital currency ranks to become the “last shiny thing in the crypto space”.

The native blockchain Terra token was trading above $ 66 on Thursday, according to data from Messari, which rose about 60% over the past week.

With a market capitalization of around $ 25 billion, Luna is now the 11th largest cryptocurrency, according to CoinMarketCap.

The large increase is believed to be due in part to a reduction in supply, according to a report.

There is also a lot of buzz about the Terra ecosystem for decentralized finance (DeFi) and stable products, Antoni Trenchev, co-founder of crypto lender Nexo, told Bloomberg.

He called it “the last shiny thing in the crypto space, following in the footsteps of other blockchains like Solana and Avalanche, all [of] who have seen explosive gains over the past year.

The Terra Protocol uses stablecoins (cryptocurrencies that attempt to tie their market value to an asset like the US dollar) to support a DeFi ecosystem comprising applications like Anchor, Pylon, and Mirror Protocol.

Singapore-based Terraform Labs, the company behind the design of the Terra blockchain, is in dispute with the United States Securities and Exchange Commission over whether the platform sells unregistered securities.

The SEC recently announced that it has filed a lawsuit against Terraform Labs and co-founder and CEO Do Kwon for an order directing them to comply with the investigation subpoenas for documents and testimony.

Many regulators around the world are looking to strengthen the regulatory framework around stablecoins, including the United States

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