Away from the huge hype about the second largest Shiba Inu meme, and its skyrocketing heights. It seems that there are cryptocurrencies that shine silently without the noise, including Terra Luna. While one of the most promising digital currencies is preparing to record strong increases in the coming days.
Thanks to 3 reasons, Terra Luna is leading to a promising future. The successful launch of the long-awaited Columbus-5 update is just one of the factors in this promising coin's rise to a new record high. There are many reasons why the price of Terra (LUNA) reached a new all-time high, becoming the 11th largest cryptocurrency by market cap.
Upgrades Protocol upgrades are one of the biggest drivers of activity in the market because they demonstrate developers' dedication to fixing bugs. Integrating user requests and adding new features makes the protocol competitive and supports the value of the token, which brings in more traders. One project that saw the token price soar to a new all-time high after launching a highly anticipated upgrade is Terra (LUNA).
It is a blockchain protocol that uses stablecoins pegged to fiat currencies such as TerrUSD (UST) to create a global payments system. Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $23.81 on September 21. LUNA price surged 108% to hit a new record high of $49.55 on October 4 as 24-hour trading volume surged to $2.5 billion.
Three reasons for the price breakout in LUNA 1- Launch of the Columbus 5 update that introduced the LUNA burning mechanism 2- The protocol’s adoption of the IBC standard which opens up Terra to the Cosmos ecosystem 3- Increase in DeFi applications and the total value locked on the Columbus-5 protocol Columbus-5 was launched on September 30 and according to Terra developers and independent analysts. The upgrade is the most important development that happens to the protocol. One notable change that came along with the upgrade was a modification to the project's token model which resulted in all used LUNA hardware being burned.
According to data from Terra, $832 million worth of LUNA was burned up in the Columbus-5 birth cluster. This change introduced deflationary pressures on LUNA supply and could help boost its price in the long term as demand grows. https://twitter.com/terra_money/status/1443533409821675524 Inter-Blockchain Communication Standard (SE:7010) The second reason for LUNA’s increased activity is its integration with the Inter-Blockchain Communication (IBC) standard that allows the Terra Network to communicate and interact with protocols in the Cosmos ecosystem.
This integration opens up Terra and its UST stablecoin to widespread adoption throughout the Cosmos backing ecosystem and makes it the stablecoin of choice for applications and chains in the network. With a greater range of projects now having access to underground tanks, this could lead to a tighter supply of the LUNA device. DeFi Protocols The third reason for LUNA’s upward price movements is the network’s growing backing ecosystem.
For decentralized finance (DeFi) protocols that helped push the total value of the protocol to a new all-time high. According to data from Defi Llama, the total value of assets locked on the Terra network reached a record high of $10.07 billion on October 4. The price of LUNA was rising to a new record high.
Currently, Terra's TVL exceeds $10 billion. The top-ranked platform in terms of TVL is Ancor Protocol (ANC) with a value of $3.86 billion. Other notable DeFi protocols on the network include Lido (LDO).
Which has a TVL of $3 billion, and Mirror (MIR) with a TVL of $1.38 billion. and Terraswap, which stands at $1.32 billion TVL. Terra Luna is now trading near its all-time highs during those moments of Thursday's trading.
On October 4, it jumped to levels of $49.45. While Luna is now rising at levels of $45.3 during these moments of writing the report. An increase of 11%, while it has risen by more than 33% since the beginning of October.
Terra ranks 11th among the major digital currencies with a market value exceeding $18 billion yet. The rise is about 6700% since the beginning of the year, while it rises by about 205% within sixty days. The article does not express a recommendation or recommendation, but rather is merely a monitoring of market fluctuations.
Trading in digital currencies involves high risks, including the risk of losing some or all of the investment amount. Note that it is not completely subject to financial authorities and markets.
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