LUNA outperforms Bitcoin’s rally and prepares for the big rise

With the Bitcoin and cryptocurrency markets breaking record highs, the bulls are in control, and the top 10 is Terra’s native cryptocurrency LUNA, which rose 12.9% on the daily chart. As of press time, with a transaction price of more than $40, this cryptocurrency has outperformed BTC and major altcoins in a lower time frame.

LUNA rebounded on the daily chart. source: LUNAUSDT transaction view

However, LUNA may be just starting the engine and is preparing to provide new support in the short term. In the past few months, the Terra Ecosystem has been making significant improvements to its ecosystem.

Related Reading | Why the Terra Ecosystem postponed major mainnet upgrades in late September

Therefore, LUNA may have multiple bullish reasons to continue to outperform the market.Recently as a researcher Ryan Watkins Indicated, Terra has closed all 3 large-scale upgrades to its infrastructure.

Colombus-5 and Wormhole V2 upgrades have been launched, and the inter-blockchain communication (IBC) protocol upgrade will be launched today (October 20)day.

As NewsBTC reported in August, Columbus-5 was postponed to give each participant in the Terra ecosystem more time to prepare for the upgrade. Designed to introduce a deflation mechanism for LUNA, this upgrade will increase Terra’s interoperability while creating more demand for its underlying assets.

At the same time, the Wormhole upgrade will operate as a communication component between Terra, Ethereum, Solana, Binance Smart Chain, and possibly more blockchains in the future.

Related Reading | Why Terra (LUNA) will reward users through a new community bounty program

In addition, the upgrade introduces a user interface that will eliminate friction between network value transfer capabilities. Finally, the IBC agreement will enable Terra to benefit from “permissionless cross-chain token transactions.” The team behind Wormhole celebrated this achievement:

Terra is known for its vibrant ecosystem, #LUNAtic community and decentralized stable currency $UST. In recent months, Terra has grown at an amazing rate, and we are very happy to release Terra innovations on the SOL, ETH and BSC communities!

Is LUNA ready to take off?Early bull market

Historically, tokens with interoperability have performed well. With the support of its CeDeFi utility, Binance Smart Chain token BNB combined with its own destruction mechanism rose from a low of less than $30 in 2020 to a historical high of over $600.

Related Reading | Can LUNA reach $170?This venture capital fund thinks it has fundamentals

Terra has another secret weapon in its stablecoin UST. Speaking of recent developments, Watkins claimed that the Terra ecosystem has created the potential for a new cross-chain trade boom. In September, the researchers made the following predictions:

With the launch of Colombus-5 and Wormhole V2 in the next few weeks, the growth of UST may accelerate, thereby challenging DAI to become the number one decentralized stablecoin.

As shown in the figure below, Terra’s native UST has swept the decentralized stable currency market. Since February 2021, its dominance in the field has soared, and it seems to be preparing to continue this trend through an upgraded ecosystem.

Source: Ryan Watkins, Messari via Twitter

As Watkins pointed out, there are two main trends that will allow UST and Terra to grow: due to upgrades, new capital enters the ecosystem, and UST moves to new platforms.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *