One of the main reasons for Terra (LUNA) to climb the all-time new record high is the successful deployment of the long-awaited Columbus-5 upgrade.
Protocol updates are one of the most important drivers of momentum since they demonstrate developers’ commitment to resolving issues, implementing user demands, and introducing new features to keep the protocol competitive and the token’s value stable.
Terra (LUNA), a blockchain technology that employs fiat-pegged stablecoins like TerrUSD (UST) to build a worldwide payments system, has seen its token price soar to a new all-time high following the introduction of a much-anticipated update.
According to data from coinmarketcap and TradingView, after hitting a low of $23.81 on Sept. 21, the price of LUNA soared 108% to a new high of $49.55 USD on 4th Oct., with a $2.5 billion 24-hour trading volume. At the reporting time, Terra (LUNA) is presently trading at a price of around $47.25 USD, which is +16.02% up for the day.
3 Months Tera Price Chart – Source: CoinMarketCap
The launch of its Columbus-5 upgrade, which offered a LUNA burning mechanism, the protocol’s acceptance of the IBC standard, which opens Terra to the Cosmos ecosystem, and a rise in Defi apps and total value locked on the protocol are three causes for the price breakout in LUNA.
Columbus-5 became live on September 30th, and according to Terra developers and independent experts, it is the protocol’s most important improvement yet.
One of the most noteworthy changes brought about by the upgrade was a change to the project’s tokenomic model, which now requires any LUNA used to mint UST to be burnt rather than put into the communal pool.
The genesis block of Columbus-5 was estimated to have burnt $832 million worth of LUNA, according to Terra statistics.