Inside Terra’s $2.38 Billion Reserves, What Made The Lineup?
April 18 2022 - 1:00PM
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Terra (LUNA) has been aggressive about filling up its reserves with
trusted cryptocurrencies to serve as a backup for its stablecoin
UST. This has evolved over time to include a number of various
cryptocurrencies that now make up its reserves sitting at $2.38
billion. This is still a long way from where the Luna Foundation
plans for its reserves to be, making it a work in progress. In this
report, we take a look at these reserve currencies and the portion
allocated to each one. Diving Into Terra’s Reserves As mentioned
previously, Terra’s crypto reserves have gone up to as high as
$2.38 billion since it first announced it was starting the
reserves. Luna Foundation Guard has been putting more money into
its Bitcoin reserves, which it plans to get to at least $10 billion
in BTC with time. This makes the pioneer cryptocurrency the largest
of the holdings in this regard. Although there are other
cryptocurrencies that mark the lineup, bringing the total to four.
Related Reading | ADA To Rebound With Integration Of USDT And
USDC On Cardano? Following behind Bitcoin are the ERC-20 tokens
which combined make up the second-largest percentage of the
reserves at 23.2%. These are both stablecoins USDC and USDT, coming
out to a total of $549.80 million of these tokens serving as
reserves for USDT. Additionally, Terra’s native token, Luna,
also makes the list of reserves used by the network. It accounts
for 7.2% of all reserves with a dollar figure of $172.20 million
and a total token balance of 2.25 million Luna tokens. The
foundation recently purchased an additional 123.89 BTC to add to
its reserves bringing its total to 42.53K BTC. This put Bitcoin in
the large majority at 69.6% of all reserves, coming out to a total
dollar value of $1.66 billion. Where’s AVAX? Last week, it was
announced that Terra would add AVAX to its reserves as a way to
combat the rising competition. This came as a result of a
collaboration between Avalanche Foundation, Terraform Labs, and the
Luna Foundation Guard who had said they would be purchasing about
$200 million worth of AVAX to add to its reserves. Related
Reading | Bitcoin Clings To $40K On Easter Sunday As Crypto
Seen To Head Lower In The Short Term Do Kwon, founder of Terra, had
explained that the decision to add AVAX to Terra’s reserves had
been fueled by the loyalty to the network. However, a look at LFG’s
reserves shows that there is no AVAX in sight. This could easily
mean that the foundation is yet to add AVAX to its reserves.
However, per the deal with Avalanche Foundation, both the Avalanche
Foundation and Terraform Labs currently hold $100 million worth of
AVAX each, while the Avalanche Foundation now holds $100 million
worth of LUNA and $100 million worth of UST. Featured image from
CryptoSlate, chart from TradingView.com
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