What is driving the price of Terra (LUNA) up by 20%? | Bitcoin magazine
Growing interest in stablecoins, new partnerships and the improvement in broader market conditions have supported LUNA’s renewed upward momentum.
Altcoins continue to move higher while Bitcoin price remains in the $ 31,000 to $ 36,000 range.
Bitcoin’s predictable reach appears to be helping Terra (LUNA), a blockchain protocol specializing in fiat-backed stablecoins like TerraUSD (UST), operate a global payments system.
LUNA / USDT – 1 day chart | Source: TradingView
The team behind Terra was very busy in June due to many protocol upgrades as well as new partnerships and integrations.
Key developments in the Terra ecosystem include the launch of Mirror V2, the addition of terra farming opportunities on Dfyn, and the listing of LUNA on the Crypto.com exchange.
Support from Terraform Labs
The Terra price rose on July 7th after Terraform Labs (TFL), the company behind the Terra blockchain, pledged to add 50 million Terra SDT (SDT) worth about 70 million UST from TFL’s stable reserve fund use it to convert retained earnings into capital for the Anchor Protocol (ANC).
“TFL will convert retained earnings for Anchor with 50 million SDT (approx. 70 million UST) from the TFL stability reserve fund into capital. Supporting Anchor and the Terra community is TFL’s mission, which includes ensuring the long-term benefits and success of the Terra ecosystem. “
The move is intended to provide ample time to introduce more types of collateral and self-sustaining protocol enhancements that will be released as part of Anchor V2 in the coming weeks. In addition to this, it will also help keep the bid rate for UST stakers in the Anchor Protocol at 20%.
Partnership underscores demand for stablecoins
Another bullish impulse came after the team announced A comprehensive partnership with the Harmony Protocol (ONE) will enable UST to migrate into the Harmony ecosystem.
“We are pleased to announce a comprehensive partnership with Terra in which we will work together on the development of Harmony and Terra.”
This partnership underscores the growing need for reliable and secure stablecoins that can operate on multiple blockchain networks to support operations and facilitate the expansion of the ecosystem.
The growing interest in integrating with the Terra ecosystem is the latest example of the growing role of stablecoins in the broader crypto ecosystem, a trend that continues to thrive as if newbies step into the crypto space.
According to Cointelegraph