Terraform Labs, the Korea-based company behind the Terras Blockchain Project (LUNA), continues to focus on driving developer activities on the network.

Meanwhile, the real impact of the fundamental upgrade known as Columbus-5 with the introduction of the Inter-Blockchain Communication Protocol (IBC) and wormhole support for communication methods near Terra has yet to be clarified.

160 more projects on Terras

Columbus-5 successfully launched at the end of September and, according to the developers, the Terras ecosystem is about to explode.

Terra’s ecosystem sprint through the end of the year will be a sight to behold.

Bonus – IBC and Wormhole go live next week

– Terra (UST) Powered by LUNA (@terra_money) October 14, 2021

“Columbus-5 is currently running, more than 60 projects are preparing to launch in the next six to eight weeks, and there are more than 100 projects that recently announced plans for later this year or early next year.” Said Do Kwon, Co-founder and CEO of Terraform Labs Asia markets.

During the interview, Kwon went on to explain how the upgrade, which opens up many opportunities in the development of the ecosystem, improves Terra’s stablecoin use case while pushing LUNA’s price up.

Do Kwon – CEO of Terraform Labs

“Further projects on Terras diversify and increase the demand for UST, accelerate the expansion of the stablecoin supply and increase the value for LUNA holders.”

What’s up for UST?

Terras UST currently ranks fifth in stablecoins with $ 2.74 billion in terms of capitalization.

Top 5 stablecoins by capitalization | Source: Coinecko

While Terra’s LUNA token is being used, the UST’s algorithmic stablecoin maintains a value roughly equivalent to a dollar.

“Legislative action against centralized stablecoins like USD Coin (USDC) and Tether (USDT) has increased the importance of some decentralized stablecoins like UST,” said Kwon, adding:

“Since custody stablecoin models do not scale well and act as a risk hub in the DeFi system, we expect the introduction of decentralized stablecoins to increase in the months and years to come.”

IBC and wormhole

The integration of the IBC protocol, which Terra is supposed to open for a large number of dApps in the Cosmos (ATOM) ecosystem, also enables the UST to switch seamlessly between the chains.

IBC facilitates the connection and communication between sovereign chains and enables the transfer of tokens between Cosmos and other IBC-compatible blockchains.

“Similarly, Wormhole is a cross-chain bridge between Solana, Ethereum and Binance Smart Chain, which enables Terra-based assets like UST to be locked down and industry users to seamlessly switch between the chains,” added Kwon, emphasizing the importance the upcoming bridge, which is expected to significantly reduce the friction for USTs when moving from one blockchain to another.

“We anticipate that the demand for USTs in cross-chain environments will accelerate the expansion of UST supply even further and potentially reach a market cap of $ 10 billion by the end of the year,” said Terras CEO.

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