Interest in ATOM, as well as the overall altcoin season, played in the increase in price for Luna.

The previously heavily depreciated native asset of the Terra ecosystem, Luna, experienced a strong influx of investor funds by the end of September 9. Luna’s price nearly tripled from its September 8 low on September 9, reaching $5.96 by early September 10. Luna’s capitalization momentarily jumped to nearly one billion dollars ($995 million), correcting to $778 million by early September 10.

Luna’s price received support from increased investor interest in the Cosmos ecosystem’s native asset, ATOM. Given that the Terra (Luna) ecosystem is built on top of Cosmos, investors also showed interest in Luna. The uptick in ATOM was not as impressive (+14%, to $16.06) as it was in Luna, given that ATOM started rising from a higher price base.

It’s also worth noting that the cryptocurrency market as a whole was also on the rise following bitcoin, which rose to $21,500 by early September 10 (+4.3% overnight) – this led a number of investors to decide to expand the lineup of digital assets in which they invest to include Luna. Recall that bitcoin’s level of dominance has recently been at its lowest value in four years, signaling the arrival of altcoin season.

Whether Luna’s growth will be sustainable depends on the future of the Terra ecosystem. Recall that Luna collapsed in value in May from $65 to less than one dollar, which ultimately affected the sustainability of the TerraUSD (UST) dollar-stable. Meanwhile, Terra founder Do Kwon expressed confidence in June in an interview with The Wall Street Journal that investor confidence in the Luna ecosystem has been restored.

https://altcoin.ng/why-is-luna-price-increasing-by-300-daily/

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