Luna Foundation Guard (LFG), which had purchased 35,767 BTC to fulfill its promise of $10 billion in UST stablecoin reserves to support its UST stablecoin reserves has now diversified its portfolio by acquiring (AVAX tokens) worth $100 million.

Luna adds $100 million AVAX to its UST reserves

LFG earlier this year announced it was building a reserve to support stablecoins (UST). It would do so by buying up to $10 trillion in Bitcoin. Following a number of Bitcoin purchase, the LFG is now looking to buy another cryptocurrency.

The LFG announced that its $100 million purchase of Avalanche (AVAX) “marks the start of a diverse pool of layer one crypto assets helping support the $UST peg.”

According to Avalanche, the LFG chose to add AVAX to its reserve ahead of other altcoins because of its “rapid growth and vast fan base.”

Bearish Market: AVAX Ralls

This news confirmed that AVAX is now a bullish day despite the growing bearishness in the wider crypto market. AVAX rose 6% in the past 24 hours to $89.65, a rise from $81.

Avalanche (AVAX) price chart for 24 hours Source: Tradingview

Avalanche now trades at $88.6295. The price rise has allowed the altcoin take the top 10 spot in crypto with a market value of $23.8 million.

Flipside

• Grayscale recently announced Avalanche’s addition to its Digital Large Cap Fund.

Why you should care

Luna has backed its UST stablecoin and other assets in order to protect Terra ecosystem from sharp volatility or contractions of UST demand.

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