LUNA Hits ATH After Astroport’s Launched Why Terra Could Keep Growing

LUNA, possibly one of 2021’s most-performing assets has been trending against market trends for 2 weeks. Bitcoin, Ethereum and the other major cryptocurrency cryptocurrencies were still in range, but the Terra native token entered uncharted territory.

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LUNA is trading at $87 as of press time. This represents almost a 40% rise over the previous month.

LUNA rallies in the 4-hour chart. Source: Tradingview LUNAUSDT

NewsBTC reported that Terra has made several enhancements to its mainnet over the last months. This included Wormhole v2, Colombus-5, and Inter-Blockchain Communication Protocol (IBC).

The first of these upgrades could be the fuel that has triggered LUNA’s rally as it implemented a burning mechanism into the network. This upgrade effectively turned LUNA into a deflationary investment that will see continued buying pressure in the future.

A Delphi Digital report states that the Terra ecosystem also benefits from Astroport (an Automated Market Maker) deployment. Although the protocol is still in its early stages, it has seen capital inflows of over $1 billion.

This capital injection into Terra’s ecosystem coincides with LUNA’s rally which goes to show the importance of adoption for this token’s performance. Delphi Digital said:

The LUNA market price reached another ATH today, before retracing lower. The last price spike in the last days could have been caused by investors who bought spot LUNA to secure their Astroport lockdrop position, and then hedging with perpetual futures to maintain delta neutral.

Source: Delphi Digital

The chart shows that LUNA is on track to maintain its rally. It has reached price discovery at negative funding rates in the derivatives sector. This suggests that speculators were expecting more downside. The trend’s viability in 2022 remains uncertain.

Terra (LUNA), and Its Possibility To Takeover 2022

LUNA’s ecosystem has displayed strength in other sectors. The network’s native stablecoin UST has been gaining more adoption and could potentially disrupt this sector of the crypto market.

Delphi Digital reports an increase in market capitalization of UST shares since December 15, 2015.Th. This stablecoin has been in a close fight with DAI, one of Ethereum’s most prominent assets, as seen below. Delphi Digital added:

DAI and UST are neck-and-neck when it comes to market capitalization. DAI was briefly overtaken by UST last week as the fourth-largest stablecoin. DAI was more decisive in yesterday’s victory than UST, which had traded higher over the past 24 hours.

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Christmas is still some days away, but December has already proven itself as one of LUNA and Terra’s most important months in 2021. The network’s solid foundations suggest that it is well positioned to maintain its upwards trend.

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