Luna Foundation Guard, a non-profit that supports the Terra blockchain, has moved to diversify its crypto reserves by purchasing $100 million worth of Avalanche (AVAX) tokens, Bloomberg reports.
The move is meant to boost the stability of the native UST stablecoin, whose market cap has now swelled to $16.7 billion, according to CoinMarketCap data.
LUNA, the governance token of the Terra blockchain, has been on a roll since LFG made an announcement about creating a billion-dollar Bitcoin reserve.
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The Bitcoin buying spree started by the blockchain project also became a major bullish catalyst for the largest cryptocurrency, which spiked to a yearly high of $48,234 in late March before retracing to the $43,000 level.
Alex DovbnyaAt press time, the Luna-LFG wallet holds $1.56 billion worth of Bitcoin.
Kwon’s most recent Bitcoin purchase failed to push the price of the LUNA token higher. The high-flying shed as much as 8% on Wednesday. It is currently down 12.5% from its all-time high of $119.18, which was recorded just two days ago.
Tomiwabold Olajide
Dan Burgin
U.Today Editorial Team
Vladislav Sopov