$LUNA liquid circulating supply at historically low levels of 108mn compared to 146mn observed a month ago. Recent rally of $LUNA (+44%) indicates increased trust in the project and rewarding mechanism. Multiple to UST still at 1.6x (cf. history average of 3x) indicates 50% ⬆️
I believe sharp decline in $LUNA supply was driven by reward mechanism. This can be validated through the exponential growth in $LUNA staked 375mn vs. 346mn 14 days back. 3 projects are being airdropped for staking $LUNA. Pipeline indicates $LUNA can become a scarce resource.
After being stress tested in real environment $UST supply also observed an uptick. Growth in UST will have a positive impact towards $LUNA price action.
Below line chart highlights that liquid supply is shrinking while staked $LUNA observing steady growth. More new projects airdropped means more $LUNA will be staked which can reduce the liquid supply in the market.
$LUNA project pipeline
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.