LUNA prices hit record highs on October 4, following the activation of the Columbus-5 update and the IBC protocol, as well as the growth of the DeFi ecosystem. The coin moved up to 11th place in terms of capitalization.
The Terra blockchain protocol uses fiat-pegged stablecoins to create a global payment system. On October 4, the price of the crypto asset Terra (LUNA) reached a record $ 49.70, but then dropped to $ 44.43, but shows new signs of growth.
LUNA has already moved into 11th place in the Coinmarketcap rating with a capitalization of $ 18 billion, overtaking UNI. To reach the tenth place, which is now occupied by Dogecoin, the coin needs to grow at least another 80%.
The first factor influencing the growth was the Columbus-5 protocol update launched on September 30th. As part of the update, the developers introduced a modification to the project’s financial model, resulting in the burning of all LUNAs used to create the UST. This directly affects the rate of issue of the asset.
The second factor is the activation of the IBC standard protocol in March this year. Inter-Blockchain Communication (IBC) allows the network to exchange data and interoperate with other protocols in the Cosmos ecosystem, making Terra stablecoin preferred for applications on this network, where more popular stablecoins are not yet represented.
The third factor was the growth of the decentralized finance (DeFi) ecosystem. According to the Defi Llama service, the value of assets blocked in the Terra network on October 4 reached $ 10.07 billion, but now the figure has dropped to $ 9.57 billion.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
