Bitcoin and the broader cryptocurrency market have rebounded strongly at the start of this new week, as long-term investors continue to make significant gains in their investments.
Terra, on the other hand, has maintained its significant Bitcoin holdings as part of its strategy to back the UST stablecoin.
In a transaction on Monday, March 28, the Terra Foundation purchased an additional $135 million in Bitcoin, bringing its total Bitcoin purchase for the year 2022 to more than $1 billion. Terra has vowed to keep $10 billion worth of Bitcoin in its reserves.
When asked by Bloomberg News if this was true, Do Kwon, the founder of Tera blockchain confirmed it. Data shows that the address belonging to Terra Foundation purchased a total of 27,784.96954740 Bitcoins.
Kwon stated last week that Terra has $3 billion in funds available for Bitcoin purchases in order to back the UST stablecoin. According to the Bitcoin addresses of the Luna Foundation Guard, the organization started buying Bitcoin on January 26.
According to Kwon, a Bitcoin reserve will improve the UST’s capacity to maintain its dollar peg in the long run. This will be especially beneficial whenever Terra is faced with a short-term demand for the redemption of UST, Kwon said:
“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset. UST is going to be the first internet native currency that implements the Bitcoin standard as part of its monetary policy.”
Terra LUNA’s price rises above $100
Terra’s native cryptocurrency, LUNA, has made strong strides to the north. On Monday, March 28, the LUNA price soared past $100 and is currently trading at a 100 percent increase from its 2022 low.
The price of LUNA has also increased by 30% over the last three weeks. Terra’s LUNA has proven to be extremely resilient to the volatility of the cryptocurrency market since Russia’s invasion of Ukraine. As the LUNA price is now trading close to its all-time high, we expect it to set new records very soon.