Luna price increase by 300% overnight got an explanation

Interest in ATOM, as well as the overall altcoin season, played into the plus side for Luna’s price.
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 less impressive (+14%, to $16.06) than 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 on the rise following bitcoin, which rose to $21,500 (+4.3% per day) by early September 10 – this led a number of investors to decide to expand the line of digital assets in which they invest, and included Luna. As a reminder, bitcoin’s recent level of dominance located at at its lowest level in four years, signaling the arrival of altcoin season.
Whether Luna’s rise 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, ultimately affecting the sustainability of the TerraUSD (UST) dollar-stable. Meanwhile, Terra founder Do Kwon, in June in interview The Wall Street Journal expressed confidence in the restoration of investor confidence in the Luna ecosystem.

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