Terra pleased more bullish investors by showing them a tall green candle on Feb. 28 that took LUNA above $90; another green candle on 9 March briefly took the asset above $100. However, investors can use some broader context from the crypto industry to better inform their trading decisions.
BTC/USD 4-hour chart | Source: TradingView
LUNA marks a significant milestone, but here’s what investors are worried about
Research from Messari reveals that of the top 30 invested assets, Terra has the highest-circulating market capitalization. The results come after Terra spent the last quarter trailing better-performing properties like Solana, Polkadot, and Avalanche.
However, at press time, Terra’s LUNA is the seventh-largest cryptocurrency by market capitalization, trading at $91.58. LUNA is down 3.93% in the last 24 hours and up 12% in the past week.
However, aside from price, one thing that makes LUNA attractive to investors is that its volatility fell 55.5% in the last 24 hours of March 11, even as it increased 29.7 percent for the week. This could act as an incentive for new investors wanting to participate in the bull run.
3/ Of the top 30 invested assets, the highest-circulating market capitalization belongs to @terra_money.
This is significant for @terra_money considering they were fourth in market cap last quarter behind @solana, @Polkadot, & @avalancheavax. pic.twitter.com/kSH2jXiasb
— Messari (@MessariCrypto) March 10, 2022
You might expect LUNA’s investors to be on top of the world, but data from Santiment suggests this isn’t exactly the case. The weighted sentiment is in the negative zone, around -0.3 on March 11. This comes after a drop from highs around 3.92. One possible reason for this is the slight drop in LUNA price after the previous rally.
Additionally, investors may also feel that corrections may be on the way after such a dramatic correction.
While you can assume that GameFi and NFT are heating up, it seems that most investors are attracting the attention of smart contracts. When looking at the top 50 assets, smart contract platforms are the clear winner, followed by decentralized exchanges. Messari data also shows the direction of money flow.
Again, this is good news for Terra and LUNA as the project provides a lot of use cases related to smart contracts and DeFi.
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