LUNA marks an important milestone, but here’s what investors are concerned about

Terra delighted its more bullish investors when it showed them a high green candle on Feb. 28 that took LUNA above $90, while another green candle on March 9 took the asset briefly above $100. However, investors can use a broader context from the crypto industry to better inform their trading decisions.

LUNA’s place in the sun

Messari’s research found that Terra had the highest circulating market capitalization of the 30 most-invested assets. The results come after Terra lagged better-performing assets like Solana, Polkadot and Avalanche in the last quarter.

However, at the time of going to press Terra’s LUNA was the seventh largest cryptocurrency by market capitalization, trading at $91.58. LUNA is down 3.93% in the last 24 hours and is up 12% in the past week.

Aside from the price, one thing that makes LUNA attractive to investors is that it volatility dropped by 55.5% in the last 24 hours of March 11, even if it increased by 29.7% in the past week. This could be an encouragement to new investors looking to join the rally.

Source: lunarcrush.com

You would expect LUNA investors to be on top of the world, but data from Santiment shows that this is not really the case. Weighted sentiment was in negative territory on March 11, around -0.3. This came after falling from a high of about 3.92. One reason for this could be a small dip in LUNA prices that came after the earlier rally.

In addition, investors may also feel that corrections may be imminent after such a dramatic run.

Source: Holiness

Because you’re Worth It

Messari’s data also showed which direction the funds were flowing. While you might assume that GameFi and NFTs are heating up, it seems that most investors are drawn to smart contracts. Looking at the top 50 assets, smart contract platforms were a clear winner, followed by decentralized exchanges.

This is again good news for Terra and LUNA, as the project offered a plethora of both smart contract and DeFi-related use cases.

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