Terra (LUNA) Towards A Recovery Zone! LUNA Price To Reclaim $90 Level, Here’s Why

Terra (LUNA) Towards A Recovery Zone! LUNA Price To Reclaim $90 Level, Here’s Why

terra luna price

The post Terra (LUNA) Towards A Recovery Zone! LUNA Price To Reclaim $90 Level, Here’s Why appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

In the early hours today, Bitcoin had reclaimed the $40,000 range before slightly sliding down towards the $39,500 level. However, the flagship currency is still on a green candle posing as a ladder for Ethereum and other altcoins to have a bull rally.

Among many such altcoins is Terra (LUNA) Price which is down by 31% over a month. But when looking at the current green signal it looks like LUNA/USDT is in a recovery zone.

Terra Deposits Decline

Even though Terra (LUNA) is outperforming the global cryptocurrency market by 20%, the currency is struggling to hold its price level above $85 support.

However, at the moment, Terra (LUNA) is trading at $86.21 with an upswing of 1.54% over the last 24hrs indicating a recovery phase.

Earlier on April 18, it was seen that Terra’s USD (UST) stablecoin had taken over Binance USD (BUSD) to gain the title of third-largest stablecoin and on April 26 there was an announcement that a digital asset custody platform, Fireblocks, had witnessed institutional clients investing around $250 million into Terra decentralized finance (DeFi) ecosystem.

This positive news inflow was not enough to induce Terra investors’ confidence and this resulted in a few changes which saw a partial crash in the continuous deposits on the network.

Terra’s DApp Finds Bottom

Over the past four weeks, Terra network’s decentralized application metric surged by 41% while the network’s total value locked (TVL) hit an all-time high at 254 million LUNA.

In 2022, deposits from Terra’s DApp witnessed a 77% surge which amounts to $21.2 billion. When this is compared to Binance Chain’s TVL, this is currently positioned at $9.8 billion, which is a 9% increase in BNB’s year-to-date.

In order to confirm an increased DApp’s use, investors should look at the transaction count within the network.

In comparison with Anchor, Anchor holds $16.6 billion TVL which is similar to 78% of Terra’s decentralized application deposits. Last week the protocol was 15% below the levels last seen in early April as the network’s transaction is positioned at 70,150.

Within Terra’s network, the second position is held by Astroport, an automated market-making project, with $1.6 billion worth of deposits. When looking at the last week’s transactions, it is positioned at 50,650 declining 30% from the previous month

Derivatives Data On Comfort Zone

Though we saw that the Terra DApps usage plunged, this seems to have near to no effect on derivative traders’ interest.

LUNA futures contract open interest is positioned at $706 million. However, this number is quite critical as even a smaller future contract number can limit arbitrage and institutional investors’ activity.

Interestingly, Terra acquires the third position in open interest after Bitcoin and Ethereum.

Closing Thoughts

Though the exact reason for LUNA’s declined price cannot be said, the decreased usage of Terra’s decentralized apps can be one of the reasons.

Nevertheless, there is an increase in Terra’s smart contract deposits shown by TVL increase and interest from derivatives traders, and this points towards Terra (LUNA) price recovery.

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