Wrapped LUNA, also known as WLUNA, is nothing more than a popular Ethereum Token designed to represent Terra (LUNA) on the blockchain. The ERC token that is intended to track the value of LUNA, instead of LUNA itself, is separate from the cryptocurrency.
Everything to Know About Wrapped LUNA Token (WLUNA)
We must first discuss what a wrapped token is specifically before going any further. A wrapped token is simply a tokenized version of another cryptocurrency that is linked to the value of the asset it represents and can always be exchanged (unwrapped) for it. It is well known that a wrapped token typically represents an asset that does not naturally reside on the blockchain that it is issued to.
Simply put, think of a wrapped token as a stablecoin-like object whose value is derived from another asset. A wrapped token needs a custodian, which is an organization that owns the same assets as the wrapped amount. Additionally, this custodian could be a merchant, a smart contract, a decentralized autonomous organization (DAO), or even a multi-sig wallet.
It is important to discuss what WLUNA actually is since it is based on Terra, also known as LUNA. let me help you with that. In order to power international payment systems with price stability, Terra is a blockchain protocol that is said to use fiat pegged stablecoins.
Launched in April 2019, Terra is rumored to offer cheap and remarkably quick settlements and is said to combine the widespread use of fiat currencies, price stability, and censorship resistance of Bitcoin (BTC).
In addition, the Terra blockchain is known to support the issuance of price tracking stablecoins (TerraUSD, TerraKRW, etc.) that are pegged to some of the most widely used currencies worldwide. This security is provided by distributed consensus over the native staked asset LUNA.
Additionally, as the majority of you are already aware, WLUNA is the platform’s native utility token and can be used for a number of different things on the platform itself. In addition, WLUNA was created to enable LUNA holders to hold, trade, and take part in DeFi on Ethereum decentralized applications. Additionally, with the assistance of the WLUNA partner, it is simple to convert 1 LUNA into 1 WLUNA and vice versa.
Investing in Wrapped LUNA Token (WLUNA)
With a twenty-four hour trading volume of 134,741,527 dollars, Wrapped LUNA is currently trading for about 76.31 US dollars. Not only that, but in just the last twenty-four hours, the value of Wrapped LUNA Token increased by 35.21%. As a result, despite the currency’s unknowable market cap and circulating supply, WLUNA is currently ranked #2783 on CoinMarketCap.
The maximum lifetime supply of Wrapped LUNA is approximately 5,183,893 WLUNA coins, and in the past week alone, the platform’s price has increased by 74.92 percent.
You must have a good understanding of the platform after reading this far, and at this point, you should be able to decide for yourself whether investing in Wrapped LUNA is the best course of action for you. I firmly believe that Wrapped LUNA Token can prove to be a successful investment in the near future, which is likely to provide you with higher returns and it is possible that your current investment may increase in value. This is because of what it has to offer in combination with its performance in the recent past and its plans for the near future. On the other hand, nothing is certain.
If you’re still not persuaded, consider the fact that if you purchase Wrapped LUNA Token today for $100, you will receive nearly 1.311 WLUNA. Experts in the field have conducted an analysis that predicts your investment will yield a return of approximately +552.37 percent after five years. As a result, your current $100 investment will be close to 652.37 US dollars in 2026.
Cryptocurrency is a very volatile market that is very uncertain, as was stated at the very beginning. Thus, it is crucial for you to comprehend that Wrapped LUNA has risks of its own, just like any other cryptocurrency on the market. You should only invest if you are prepared to take those risks and, if necessary, absorb any and all losses.
If you’re wondering where you can purchase Wrapped LUNA Token, read on. Permit me to assist you with that. Currently, Wrapped LUNA is accessible on a variety of cryptocurrency exchanges, but to name a couple, Coinbase Exchange and Uniswap (V2) have the token listed on their platforms. Hopefully, a lot more exchanges will list the token soon for even easier access.
What is the Difference Between Wrapped Luna and Luna?
The fact that the two assets exist on two different blockchains is their only distinction. Terra Luna is a native platform token on the Terra network, as opposed to Wrapped Luna, which is a derivative token that exists on Ethereum. WLUNC (ex-WLUNA) tracks the price of
Algorithmic incentive processes are used by Terra Luna LUNC (ex-LUNA). When the price of either item changes, arbitrage traders will enter the market to profit from price differences, according to Terra’s development plan. They will purchase a less expensive option, redeem or mint the alternative, and then trade a more expensive model
for profit. More arbitrage traders will attempt to profit from this price discrepancy, which will decrease the supply of the less expensive option while increasing demand for it. As a result, as the price rises, the profit margin will be gone.
Conclusion
Digital assets tied to the value of other assets are known as wrapped tokens. What do you think of the wrapped LUNA token? Please share your thoughts in the comments section. Check out our website’s other articles if you want to learn more about different cryptocurrencies. Thank you for your time, and please let your investor friends know if you found our content to be informative.
