While large cryptocurrencies such as Bitcoin and Ethereum continue to struggle, LUNA is making a comeback.
Terra (LUNA) achieved a high of US$0.00058798, signaling a debris-to-hubris condition. The cryptocurrency recovered after Do Kwon, the founder of Terraform Labs, published a recovery plan for TerraUSD and Terra Luna on the Terra Blogspot in the aftermath of the crash.
Luna’s Growth Is Outpacing Bitcoin’s! Is Bitcoins Golden Age Over?
Do Kwon confess in the blog post that the community has lost faith in the network’s decentralized stable coin, Terra USD? Terra’s growth has previously been related to TerraUSD, but with the coin crisis, the community should now focus on how the broader ecosystem can prosper, according to the founder.
Terra’s community must rebuild the chain, and validators must reset the network to 1 billion tokens, according to Kwon. It is undeniable that LUNA grows quicker than bitcoin.
Does this imply that BTC’s golden era has come to an end? Let’s have a look.
The Return Of Terra (LUNA)
Kwon emphasized the Terra network’s need for a realistic inflation rate of 7% to motivate its security, as fees will no longer be enough to pay for security without trading fees.
Furthermore, according to the founder, Terra USD stable coin holders should own a significant share of the network because they are the network’s debt holders and should be adequately rewarded.
Apart from that, he stated that the Terra network needed token holders from before the crash to remain in the ecosystem and contribute value.
Surprisingly, the recent increase in the value of the cryptocurrency pales in comparison to the massive loss that preceded it. The token has dropped from an all-time high of US$118 in April to $0 in recent days.
The token is currently trading at US$0.0001775, down 24.86 percent in the last 24 hours.
Bitcoin Is Not Gaining Its Past Glory
Bitcoin and Ethereum, the two most popular cryptocurrencies, are now fighting to recover from their bearish price trends.
Despite having seen the largest meltdown in crypto history, LUNA is making a recovery, but larger cryptocurrencies like Bitcoin and Ethereum are still struggling.
Financial experts say the crypto market is following the stock market’s patterns, which saw a technology-driven sell-off earlier this week in response to large tech’s earnings results.
Bitcoin is worth $30,352.42 at the time of writing this article. Bitcoin broke through the US$45,000 resistance on April 4 and 5, heading for US$48,000. Key indicators suggested that Bitcoin would continue to soar and that the month of April would be kinder to BTC. Instead, the cryptocurrency dropped, even more, making investors nervous about its future prospects.
What Should Investors Do?
History should never be used to predict price changes in the future. Even while the Golden Cross has a history of producing spikes in the medium and long run, it’s also important to watch for fakeouts.
Bitcoin formed two Golden Cross patterns in 2015, according to Cryptopotato. However, the first one appeared to be a trick, and the 50MA briefly crossed below the 200MA. Despite the bullish crossover, taking short-term long positions may be riskier, despite the continuation of the backup.