LUNA Holds Ground Over $90, Do-Kwon Hints At Factors Behind Rally

LUNA, Terra’s native cryptocurrency, remains on an upward trajectory. The cryptocurrency follows the general market sentiment and is one of the best performers in the crypto top 10. Related Reading | Terra (LUNA) Surpasses Ethereum Becoming Second Most Staked Asset This trend could continue in the short term, but some indicators point to caution. In the long term, the outlook seems clearer. At the time of writing, Terra’s cryptocurrency trades at $94 with sideways movement in the last 24 hours and 6% profit in the past week. Do Kwon, Terra Co-Founder has become one of the most popular individuals in the crypto space. Very active on social media platforms, Kwon recently presented one bullish factor for the long-term survival of LUNA and the Terra ecosystem. According to Kwon, the crypto market will increase its demand for decentralized stablecoins, making Terra’s native stablecoin UST grow further. This stablecoin and LUNA operate with a burning mechanism. Whenever the demand for UST increases, the mechanism burns LUNA to increase the stablecoin’s supply and vice versa. Unlike competitors, such as Tether (USDT) and USD Coin (USDC), UST is decentralized, as Kwon reiterated. This makes it less vulnerable to single points of failure, government censorship, and other external vulnerabilities. This is probably the reason Kwon seems certain about UST’s future growth. Via his Twitter account, Kwon said: UST ‘s grew because ...