LUNA, the native cryptocurrency of Terra’s payment-focused blockchain network, hit a new all-time high of $77.16 earlier today. On CoinMarketCap, the cryptocurrency earlier overcomes Polkadot to grab 9th place but is present at the 10th position again. It has increased by 35% in the last 48 hours, extending its bullish run.
However, at the reporting time, Luna is presently trading at a price of around $65.14 USD, representing -9.58% losses for the day.
The token’s market valuation has now risen to $30 billion, placing it only behind the Ripple-affiliated XRP. The all-time high for LUNA happened following a massive market catastrophe that sent shockwaves across the sector. Ether significantly outperformed Bitcoin, with the ETH/BTC pair reaching 0.855 BTC, its highest level since May 2018. Bitcoin’s market share has now dropped below the psychologically crucial 40% threshold.
LUNA/USD 1 DAY PRICE CHART: SOURCE – COINMARKETCAP.COM
Let’s have a look at the three causes for the price breakout in LUNA:
- Columbus-5 has arrived.
Columbus-5 became live on September 30, and according to Terra developers and independent observers, it is the most important enhancement to the protocol to date. One major change brought about by the update was a change to the project’s tokenomic model, which results in all LUNA used to mint UST being burnt rather than entering into the communal pool. According to Terra statistics, the genesis block of Columbus-5 burnt $832 million worth of LUNA.
- Inter-Blockchain Communication standard
The integration of LUNA with the Inter-Blockchain Communication (IBC) standard, which allows the Terra network to connect and interact with protocols in the Cosmos ecosystem, was another cause for the surge in LUNA’s momentum. This integration makes Terra and its UST stablecoin more widely available throughout the Cosmos ecosystem, making it the stablecoin of choice for network applications and chains.
- The whole worth of the Terra ecosystem is increasing.
The network’s developing ecosystem of decentralized finance (DeFi) protocols, which has helped drive the total value locked on the protocol to a new all-time high, is a third cause for the optimistic price swings in LUNA.