Try Quests to earn crypto108. [Easy] The Fundamentals
This dashboard looks at the LUNA token price in USD versus UST supply. LUNA is the governance token of the Terra ecosystem, and its price has recently risen to all-time highs. One of the factors that effects LUNA's price is the supply of UST, one of the stablecoins on the Terra ecosystem. As can be seen in the graph below, the price of LUNA seems to be heavily correlated to the supply of UST. There have been a couple periods of time where they do not seem to match up, such as from mid-May of 2021 to mid-August 2021, where the supply of UST remained stable while the price of LUNA fell, but for the most part rises in UST supply are correlated to rises in the Terra price. The recent jump in LUNA price from about $40 to about $70 was joined by a large spike in UST supply, suggesting that when UST supply spikes, so does the price of LUNA.