What happened
Anyone holding Luna (LUNC 4.56%) tokens (the native cryptocurrency of Terra) is undoubtedly happy today as these tokens continue to skyrocket in value. According to CoinMarkCap, Luna tokens are up 15% over the past 24 hours and are up roughly five times in value over just the past month. Driving the increase in price today is strong trading volume -- up 37% from yesterday.
So what
Keep in mind that today's 37% volume gain is impressive considering Luna tokens were up big yesterday as well. There are a couple of fundamental factors driving awareness for Terra's Luna. The biggest factor could be related to Coinbase. As one of the largest cryptocurrency exchanges in the world, it can bring awareness to a cryptocurrency simply by supporting it.
Image source: Getty Images.
On Aug. 12, Wrapped Luna and TerraUSD both became tradable on Coinbase Pro. While not directly Luna tokens, these cryptocurrencies are all related and this likely helped drive awareness.
There's another factor that could be driving a surge in trading volume for Terra's Luna. Recently, news broke that Terra is set for an upgrade called Columbus-5. As reported by CoinDesk, the Columbus-5 upgrade will enable more applications to be built on the network and will create greater financial incentives for stakers -- people allowing their tokens to be used for the network. These two factors aren't new today but likely started the spike in value for Terra's Luna.
Now what
So, should you buy Terra's Luna tokens today considering the growing popularity? The first order of business for any potential investor in Luna is to learn more about it -- this article just covers why it's up right now. But I would encourage any potential Luna investor to tread cautiously. It's easy to get caught up in emotions and make a rush decision -- that's true with both stocks and cryptocurrencies. However, the best financial decisions are made with your long-term goals in view and with a level head. If you feel the need to buy today or risk missing your chance forever, then it's probably best to wait on the sidelines for now.
