Market
LUNA is ready for a spectacular outbreak, why?
Terra is on the verge of a surge in network adoption as it enables interoperability with other blockchains. Use cases of the network will be developed to help LUNA achieve higher price peaks.
Strong foundations
Bulls are in control as bitcoin and crypto markets break all-time highs. LUNA is currently approaching the top 10 with a daily gain of almost 14%. Trading for over $ 41 at press time, the cryptocurrency outperforms BTC and major altcoins in a shorter timeframe.
However, LUNA may be just getting started and ready for a short-term redevelopment. The Terra ecosystem has made many important improvements over the past few months.
As a result, LUNA has more reasons to continue to outperform the rest of the market. As researcher Ryan Watkins did shown Terra recently made all three major upgrades to its infrastructure.
The Colobus 5 and Wormhole V2 upgrades are in operation and the Inter-Blockchain Communication (IBC) protocol upgrade was deployed on October 20th.
As reported in August, Columbus-5 is being delayed to give all actors in the Terra ecosystem more time to prepare for the upgrade. This upgrade is designed to increase Terra’s interoperability while creating more demand for the underlying asset.
In the meantime, the wormhole upgrade will act as a communication component between Terra, Ethereum, Solana, Binance Smart Chain and many other potential blockchains in the future.
In addition, the upgrade introduced a user interface that eliminates the difficulty of transferring network values. Ultimately, the IBC protocol will allow Terra to benefit from permissionless cross-chain token transfers. The wormhole research team did celebration Successes:
“Terra is known for its dynamic ecosystem, the LUNA community and the decentralized stablecoin UST. Terra has grown at a remarkable rate over the past few months and we are excited to introduce Terra’s innovation to the SOL, ETH and BSC communities! “
Historically, interoperability tokens have worked very well. Binance Smart Chain’s BNB token, built into its own burning mechanism, has soared from a low of less than $ 30 in 2020 to an ATH of over $ 600 thanks to its CeDeFi utility.
Terra has another secret weapon, the stablecoin UST. Speaking of recent developments, Watkins stated that the Terra ecosystem is building the potential for a new explosion of cross-chain transactions. In September the researcher made a prediction:
“With Colobus-5 and Wormhole V2 going live in the coming weeks, UST growth will likely accelerate and challenge DAI for the top spot among decentralized stablecoins.”
Looking at the graph below, Terras UST has flourished in the decentralized stablecoin market this year. Since February 2021, its dominance over the sector has skyrocketed and appears poised to continue the trend with an improved ecosystem.
UST supply and decentralized stablecoin market share | Source: Ryan Watkins
As Watkins pointed out, there are two main trends that are driving UST and Terra: new capital into the ecosystem due to upgrades and UST migration to new platforms.
Decentralized stablecoin supply | The source: Ryan Watkins
Do Kwon, co-founder and CEO of Terraform Labs, says the demand for UST in a cross-chain environment will accelerate the expansion of the stablecoin supply. Earlier this year, he predicted that the UST would reach a market cap of at least $ 10 billion by the end of 2021.
Price LUNA
LUNA recently bounced off an important level of support.
The altcoin has corrected 30% after hitting a new all-time high (ATH) of $ 49.6 on October 4th. However, the sudden downside momentum appears to have been contained by the 50-day moving average (MA) as price rebounded from this key support. At the same time, the buy-signal of the Tom DeMark (TD) Sequential Indicator also contributed to boosting LUNA’s price in the last few days.
On the current daily chart, LUNA is showing two green candles trading above a previous green candlestick, so the bullish TD pattern can be considered confirmed. Sustained buying pressure will create two more green candles, or in other words, continue the uptrend.
The supply zone between $ 42 and $ 44 is resistance from the “heavy dollar” preventing LUNA from advancing further. However, a crucial daily close above this level could result in a retest of the ATH at $ 49.6.
The source: TradingView
As long as the 50-day MA at $ 37 remains support, the bullish outlook will prevail. Conversely, if this strong position is not maintained, it can result in significant losses as the next major demand zone is around $ 31.
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Market
LUNA is ready for a spectacular outbreak, why?
Terra is on the verge of a surge in network adoption as it enables interoperability with other blockchains. Use cases of the network will be developed to help LUNA achieve higher price peaks.
Strong foundations
Bulls are in control as bitcoin and crypto markets break all-time highs. LUNA is currently approaching the top 10 with a daily gain of almost 14%. Trading for over $ 41 at press time, the cryptocurrency outperforms BTC and major altcoins in a shorter timeframe.
However, LUNA may be just getting started and ready for a short-term redevelopment. The Terra ecosystem has made many important improvements over the past few months.
As a result, LUNA has more reasons to continue to outperform the rest of the market. As researcher Ryan Watkins did shown Terra recently made all three major upgrades to its infrastructure.
The Colobus 5 and Wormhole V2 upgrades are in operation and the Inter-Blockchain Communication (IBC) protocol upgrade was deployed on October 20th.
As reported in August, Columbus-5 is being delayed to give all actors in the Terra ecosystem more time to prepare for the upgrade. This upgrade is designed to increase Terra’s interoperability while creating more demand for the underlying asset.
In the meantime, the wormhole upgrade will act as a communication component between Terra, Ethereum, Solana, Binance Smart Chain and many other potential blockchains in the future.
In addition, the upgrade introduced a user interface that eliminates the difficulty of transferring network values. Ultimately, the IBC protocol will allow Terra to benefit from permissionless cross-chain token transfers. The wormhole research team did celebration Successes:
“Terra is known for its dynamic ecosystem, the LUNA community and the decentralized stablecoin UST. Terra has grown at a remarkable rate over the past few months and we are excited to introduce Terra’s innovation to the SOL, ETH and BSC communities! “
Historically, interoperability tokens have worked very well. Binance Smart Chain’s BNB token, built into its own burning mechanism, has soared from a low of less than $ 30 in 2020 to an ATH of over $ 600 thanks to its CeDeFi utility.
Terra has another secret weapon, the stablecoin UST. Speaking of recent developments, Watkins stated that the Terra ecosystem is building the potential for a new explosion of cross-chain transactions. In September the researcher made a prediction:
“With Colobus-5 and Wormhole V2 going live in the coming weeks, UST growth will likely accelerate and challenge DAI for the top spot among decentralized stablecoins.”
Looking at the graph below, Terras UST has flourished in the decentralized stablecoin market this year. Since February 2021, its dominance over the sector has skyrocketed and appears poised to continue the trend with an improved ecosystem.
UST supply and decentralized stablecoin market share | Source: Ryan Watkins
As Watkins pointed out, there are two main trends that are driving UST and Terra: new capital into the ecosystem due to upgrades and UST migration to new platforms.
Decentralized stablecoin supply | The source: Ryan Watkins
Do Kwon, co-founder and CEO of Terraform Labs, says the demand for UST in a cross-chain environment will accelerate the expansion of the stablecoin supply. Earlier this year, he predicted that the UST would reach a market cap of at least $ 10 billion by the end of 2021.
Price LUNA
LUNA recently bounced off an important level of support.
The altcoin has corrected 30% after hitting a new all-time high (ATH) of $ 49.6 on October 4th. However, the sudden downside momentum appears to have been contained by the 50-day moving average (MA) as price rebounded from this key support. At the same time, the buy-signal of the Tom DeMark (TD) Sequential Indicator also contributed to boosting LUNA’s price in the last few days.
On the current daily chart, LUNA is showing two green candles trading above a previous green candlestick, so the bullish TD pattern can be considered confirmed. Sustained buying pressure will create two more green candles, or in other words, continue the uptrend.
The supply zone between $ 42 and $ 44 is resistance from the “heavy dollar” preventing LUNA from advancing further. However, a crucial daily close above this level could result in a retest of the ATH at $ 49.6.
The source: TradingView
As long as the 50-day MA at $ 37 remains support, the bullish outlook will prevail. Conversely, if this strong position is not maintained, it can result in significant losses as the next major demand zone is around $ 31.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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