Bonded LUNA (BLUNA) has stealthily overtaken Litecoin (LTC) and Chainlink (LINK) and is currently ranked #22 on CoinGecko.
LUNA is the Terra blockchain’s governance and staking token, while BLUNA is the token that represents staked LUNA and its associated block rewards. BLUNA is exchanged on Terra’s decentralized exchange since it is fungible and transferable like LUNA.
Although BLUNA is down by 3.3% on the 24-hour chart, it has seen gains of up to 13.8% on the 7-day chart. On the other hand, Litecoin (LTC) and Chainlink (LINK) have lost up to 8.3% and 8.4% in the 7-day chart respectively. LUNA, too, has seen gains of up to 15% in the 7-day chart.
Why is BLUNA and LUNA priced differently?
Other considerations inherent to the nature of BLUNA make the LUNA/BLUNA pricing varied among protocols, in addition to the common reason for price inefficiency.
On Anchor Protocol, for example, Bonded LUNA is priced higher than LUNA. This is because, unless it’s an instant burn, BLUNA may only be burned and traded back to LUNA after 21 days (plus three days processing time) after being bonded and minted on Anchor. And because BLUNA represents not only the value of staked LUNA but also the block rewards from staking throughout the 21-day lock-up period, it is always more valuable than LUNA.
LUNA on the other hand is sometimes priced higher than BLUNA because more users are selling Bonded LUNA, rather than buying, on DEXs.
Another reason why LUNA is priced higher is that users normally don’t buy bonded assets unless they need to use them as collateral.
Anchor currently has bonding capability that allows you to exchange LUNA for Bonded LUNA at a ratio that is extremely near to but slightly lower than one.
At press time Bonded LUNA was trading at USD 88.39, which puts it less than a dollar behind LUNA, which was at USD 89.14.