Luna Foundation Buys $100 Million in AVAX for Stablecoin Reserve: AVAX Rallies
2022.04.08 13:12
Luna Foundation Buys $100 Million in AVAX for Stablecoin Reserve: AVAX Rallies
After purchasing 35,767 BTC in its ambitious promise to buy $10 billion Bitcoin to back its UST stablecoin reserves, the Luna Foundation Guard (LFG) has diversified its portfolio, acquiring $100 million worth of Avalanche (AVAX) tokens.
Luna Adds $100 Million AVAX to its UST Reserves
Earlier in the year, the LFG announced that it would build a reserve for the stablecoin Terra (UST) by purchasing up to $10 billion in Bitcoin. After a series of Bitcoin purchases, the LFG looks to make its first purchase of another cryptocurrency.
The LFG announced that its $100 million purchase of Avalanche (AVAX) “marks the start of a diverse pool of layer one crypto assets helping support the $UST peg.”
According to Avalanche, the LFG chose to add AVAX to its reserve ahead of other altcoins because of its “rapid growth and vast fan base.”
AVAX Rallies in a Bearish Market
The news ensured that it is a bullish day for AVAX, despite the bearish trend engulfing the broader crypto market. Over the last 24 hours, AVAX has rallied 6%, hitting $89.65 from a daily low of $81.
The 24 hours price chart of Avalanche (AVAX). Source: Tradingview
Avalanche (AVAX) now trades at $88.6295, with the price boost seeing the altcoin claim the position as the 10th largest crypto, with a market cap of $23.8 billion.
On The Flipside
- In its recent rebalancing, Grayscale announced the addition of Avalanche and Polkadot to its Digital Large Cap Fund.
Why You Should Care
Luna is backing its UST stablecoin with other assets to defend the Terra ecosystem against sharp volatility and contractions in UST demand.
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