AVAX up 7% as Luna Foundation Guard adds AVAX to the UST Reserve
Ethereum Layer-1 competitor Avalanche (AVAX) has received a major boost as the Luna Foundation Guard announced it is adding $100 million in AVAX to its UST reserves.
Following the news, AVAX is trading 7% up at a price of $88 as the tenth-largest cryptocurrency with a market cap of $23 billion. This also makes Avalanche (AVAX) the first major cryptocurrency beyond Bitcoin to be added to the UST reserve.
The Singapore-based non-profit organization – Luna Foundation Guard – has pledged to buy $10 billion worth of Bitcoin (BTC) as UST reserves. Of which, it has already acquired $1.7 billion worth of BTC. This new purchase of Avalanche (AVAX) comes as a major diversifying strategy for Terra.
Do Kwon, founder of Terraform Labs, said the Luna Foundation Guard chose Avalanche as a UST reserve because of its rapid growth and wider fan base. Speaking to Bloomberg, Kwon said:
“Avalanche is still a growing ecosystem…a lot of it is fueled by loyalty to the AVAX token and users feel a lot of affinity with an asset that aligns itself with AVAX. Whereas for the average Ethereum user, aligning yourself with Ether doesn’t really mean that much.”
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