Binance, the leading cryptocurrency exchange globally, has raised the leverage ratio for Terra (LUNA) transactions fourfold. This decision is a strategic move to assist the Terra Luna community amidst its bankruptcy proceedings. Following this announcement, prices for LUNA, LUNC, and USTC have surged, signaling robust buying interest across the cryptocurrency market.
What Changes Have Been Made to Leverage Ratios?
The exchange has released an official statement detailing adjustments to leverage and margin levels for the LUNA2USDT trading pairs. Alongside the increased leverage ratio, Binance has also lowered the maintenance margin, which is seen as a positive shift for the LUNC community.
How Are Market Trends Shaping Up?
Significant upward movements have been observed in Terra (LUNA), LUNC, and USTC, all surpassing their established support levels. The anticipation of considerable token burns from Terraform Labs and the Luna Foundation Guard (LFG) is fueling this optimism.
Recently, LUNA’s price climbed 5% within 24 hours and 45% over the month, currently trading at $0.502. The activities in derivative trading have notably increased leading up to Binance’s leverage ratio changes.
Furthermore, LUNC’s price has jumped 6% today and 33% this month, reaching $0.0001221. USTC has also reported a 10% rise over the month, with trading volume increasing by 15% recently.
The surge in total open positions for LUNC futures has surpassed 100 billion, marking a notable 10% uptick in just 24 hours. Increased open positions for 1000LUNC futures on Binance and Bybit reflect a surge in trader activity.
The recent increase in leverage for Terra Luna trades by Binance indicates a strengthening belief in the Terra ecosystem’s potential within the cryptocurrency market. This development is likely to encourage heightened trader involvement in Terra Luna activities, amplifying overall buying momentum.