Protocol upgrades are one of the biggest drivers of momentum because they show developersdedication to fixing bugs, incorporating user requests and adding new features that make the protocol competitive and shore up the token’s value.

One project that has seen its token price rally to a new all-time high following the launch of a highly anticipated upgrade is Terra (露娜), a blockchain protocol that uses fiat-pegged stablecoins like TerrUSD (放) to create a global payments system.

来自 Cointelegraph Markets Pro 和 TradingView 的数据显示,在触及低点后 $23.81 九月. 21, the price of LUNA surged 108% 创下历史新高 $49.55 在十月. 4 as its 24-hour trading volume spiked to $2.5 十亿.

LUNA/USDT 1日图. 资源: 交易视图

Three reasons for the price breakout in LUNA include the launch of its Columbus-5 upgrade which introduced a LUNA burning mechanism, the protocol’s adoption of the IBC standard which opens Terra to the Cosmos ecosystem and an increase in DeFi applications and total value locked on the protocol.

Columbus-5 arrives

Columbus-5 launched on Sept. 30 and according to Terra developers and independent analysts, the upgrade is the most significant development to happen to the protocol to date.

One of the notable changes to come along with the upgrade was a modification to the project’s tokenomic model which leads to all LUNA used to mint UST being burned, instead of going into the community pool.

According to data from Terra, 有 $832 million worth of LUNA burned in the genesis block of Columbus-5.

This change has introduced deflationary pressure to the LUNA supply and it could help boost its price in the long term as demand for UST grows.

Inter-Blockchain Communication standard

A second reason for the boost in LUNA’s momentum was its integration with the Inter-Blockchain Communication (国际广播公司) standard which allows the Terra network to communicate and interact with protocols in the Cosmos ecosystem.

This integration opens up Terra and its UST stablecoin to more widespread adoption throughout the Cosmos ecosystem and make it the stablecoin of choice for applications and chains in the network.

With a larger pool of projects now having access to UST, this could lead to a further deflation in the supply of LUNA becaus more will need to be burned in the process of minting new UST.

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The total value locked in the Terra ecosystem is surging

A third reason for the bullish price moves in LUNA has been the network’s growing ecosystem of decentralized finance (DeFi) protocols that have helped push the total value locked on the protocol to a new all-time high.

According to data from Defi Llama, the total value of assets locked on the Terra network reached a record $10.07 billion on Oct. 4 right as LUNA price was breaking out to a new record high.

Total value locked on Terra. 资源: 德菲·拉玛(Defi Llama)

目前, Terra’s TVL is above $10 billion and the top-ranked platform in terms of TVL is Ancor Protocol (ANC) 与 $3.86 十亿. ANC is the main avenue for minting UST by pledging LUNA or Ether (ETH) 作为抵押.

Other notable DeFi protocols on the network include Lido (LDO), which has a TVL of $3 十亿, Mirror (MIR) with a TVL of $1.38 billion and Terraswap which has a $1.32 billion TVL.

沃特克斯™ data from Cointelegraph Markets Pro began to detect a bullish outlook for LUNA on Sept. 26, 在最近的价格上涨之前.

VORTECS™ 分数, Cointelegraph专用, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, 交易量, 最近的价格走势和Twitter活动.

沃特克斯™ 分数 (绿色) 与. LUNA价格. 资源: Cointelegraph Markets专业版

如上图所示, VORTECS™ Score for LUNA began to pick up on Sept. 21 并达到了很高的水平 73 around one hour before the price began to increase 108% over the next two weeks.

这里表达的观点和观点仅是作者的观点,不一定反映Cointelegraph.com的观点。. 每笔投资和交易动作都涉及风险, 您在做出决定时应该进行自己的研究.