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Highlights
- WLUNA, also called Wrapped Luna Token, is primarily an Ethereum Token that aims to represent the LUNA token on the Ethereum blockchain.
- WLUNA was created to ensure that LUNA participants not only hold but also trade the tokens on DeFi apps on the Ethereum blockchain.
- The WLUNA crypto on Monday was trading at US$0.000197 with a 24-hour trading volume of US$83,73,212, according to CoinMarketCap.
Terra's drastic fall from the highs of April-May can be considered as a case study for many crypto fanatics looking to enter the market without much background. The fall has posed more questions than answers for the Terra ecosystem. The recent signs of recovery seem to have reignited the market participants' hopes, and once again, the likes of Terra and WLUNA are witnessing a rise after weeks of being in a bearish phase.
One token from the Terra ecosystem, which seems to be making an impact in the past 24 hours, is WLUNA that has gained almost 7% and reported a volume gain of over 170% on 23 May.
Related read: Why is UK Treasury legalising stablecoins despite Terra crash?
What is WLUNA crypto?
WLUNA, also called Wrapped Luna Token, is primarily an Ethereum Token that aims to represent the LUNA token on the Ethereum blockchain. Unlike LUNA, the WLUNA crypto is simply an ERC-20 token, which seeks to track the value of the LUNA token on the Ethereum platform.
A wrapped token is merely a tokenised version of another crypto whose value is pegged to the asset it represents. Hence, even as a protocol doesn’t operate in the same blockchain that it was initially issued on.
WLUNA was created in such a manner to ensure that LUNA participants can not only hold but also trade the tokens on DeFi apps on the Ethereum blockchain. So, when the price of the LUNA token dipped. Naturally, the price of WLUNA also dropped drastically, eventually resulting in many leading exchanges such as Binance and OKEX stopping their services.
Why is WLUNA rallying?
The WLUNA crypto is rallying on the back of the news of it re-enabling of the Inter-Blockchain Communication protocol (IBC), which aims to prevent impermanent loss to the UST and LUNA pools.
Related read: What does Terra's (LUNA) realistic revival plan look like?
The Terra ecosystem with WLUNA aims to launch the Terra 2.0 version, which will reignite its roadmap after the embarrassing fall. However, it was unable to implement it due to a technical issue.
How is WLUNA faring?
The WLUNA crypto on Monday was trading at US$0.000197 with a 24-hour trading volume of US$83,73,212, according to CoinMarketCap. Ranked 2847, the WLUNA crypto at the time of writing was up by 24.09%, with a fully diluted market cap of US$1,009.
The rally comes after a long time considering over the past 30 days, and it has been down by over 100% in value. The rally has helped the WLUNA significantly climb up by 4754.7% from its all-time low of US $0.00000399.
Whether it will be able to maintain the momentum or not remains to be seen, but it should give the market participants some hope considering its downward slide for more than a couple of weeks.
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