LUNA Outperforms Bitcoin’s Rally, Why It’s Ready For Massive Gains
October 20 2021 - 6:00PM
NEWSBTC
Bulls are in control as Bitcoin and the crypto market break every
all-time high, coming into the top 10 is Terra’s native
cryptocurrency LUNA with a 12.9% rally in the daily chart. Trading
north of $40, at press time, this cryptocurrency has outperformed
BTC and major altcoins in lower timeframes. However, LUNA could be
just firing up its engines and getting ready for a fresh leg-up in
the short term. The Terra ecosystem has been implementing major
improvements to its ecosystem in the past months. Related Reading
| Why The Terra Ecosystem Delayed A Major Mainnet Upgrade For
Late September Therefore, LUNA could have multiple bullish reasons
to continue to outperform the market. As researcher Ryan Watkins
recently indicated, Terra is closed to implementing all 3 massive
upgrades on its infrastructure. The Colombus-5 and Wormhole V2
upgrades have gone live, and the Inter-Blockchain Communication
(IBC) protocol upgrade is set to roll out today, October 20th. As
NewsBTC reported in August, Columbus-5 was delayed providing every
actor on the Terra ecosystem with more time to prepare for the
upgrade. Designed to introduce a deflationary mechanism for LUNA,
this upgrade will increase Terra’s interoperable capabilities while
creating more demand for its underlying asset. In the meantime, the
Wormhole upgrade will operate as the communication component
between Terra, Ethereum, Solana, Binance Smart Chain, and
potentially more blockchains in the future. Related Reading | Why
Terra (LUNA) Will Reward Users With New Community Bounty Program In
addition, the upgrade introduced a user interface that will remove
friction between the network value transfer capacity. Finally, the
IBC protocol will allow Terra to benefit from “permissionless trans
of tokens across chains”. The team behind Wormhole celebrated the
achievement: Terra is known for its vibrant ecosystem, #LUNAtic
community, and its decentralized stablecoin, $UST. Terra has grown
at a dramatic rate in recent months, and we’re excited to unleash
Terra innovation on the SOL, ETH, and BSC communities! LUNA Ready
For Take-Off? Bull Market In Its Early Days Historically, tokens
with interoperable capacities have performed well. Binance Smart
Chain token BNB, integrated with its own burn mechanism, went from
a low below $30 in 2020 to an all-time high above $600 on the back
of its CeDeFi utility. Related Reading | Can LUNA Reach $170? This
VC Fund Thinks It Has The Fundamentals Terra has another secrete
weapon in its stablecoin UST. Talking about recent developments,
Watkins claimed that the Terra ecosystem has built the potential
for a new cross-chain trade boom. In September, the researcher made
the following prediction: With Colombus-5 and Wormhole V2 going
live in the coming weeks, UST growth will likely accelerate,
setting it up to challenge DAI for the top spot among decentralized
stablecoins. As seen in the chart below, Terra’s native UST has
taken the decentralized stablecoin market by storm. Since February
2021, its dominance over this sector has skyrocketed and seems
poised to continue the trend with an upgraded ecosystem. As Watkins
pointed out, there are two main trends that will allow UST and
Terra to grow: new capital coming into the ecosystem due to the
upgrades, UST moving onto new platforms. In totality these
catalysts could all drive a ton of new demand for UST in the coming
months, which has already been the fastest growing decentralized
stablecoin in 2021. pic.twitter.com/LxcTF6LHKJ — Ryan Watkins
(@RyanWatkins_) September 15, 2021
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