It has been an exciting month for fans of the Terra ecosystem and the native LUNA cryptocurrency. Both aspects have seen tremendous growth and show no signs of slowing down. While many expect LUNA to surpass $100 soon, the overall growth of Terra seems to favor even higher values.
LUNA Heads To $100
The past few weeks have yielded tremendous upward potential for LUNA, the native currency of the Terra ecosystem. A 110.2% gain in the past 30 days is incredibly impressive, especially with most crypto markets remaining in a bearish stint lately. It is unclear why the sentiment remains rather negative for Bitcoin and Ethereum, yet it doesn’t affect Terra’s LUNA all that much these days.
As LUNA went up by over 54% this week, it seems to be a matter of time until it reaches $100 or more. There is some strong resistance near that price level, but that is to be expected. Even so, the overall momentum remains rather bullish for this asset, even with other markets recovering slightly. The final week of 2021 may yield some intriguing momentum for most currencies.
Strong Partnerships Are Essential
One of the critical components of Terra’s success is the number of partnerships this project has secured. For example, following the listing of LUNA on Kraken, Terra announced collaborations with NEAR and Aurora. Partnerships like these will extend the visibility of the Terra ecosystem and help unlock new use cases, products, and services in the future.
Anchor Maintains A High Yield
As Terra is home to various prominent DeFi protocols, yield farming enthusiasts may want to take notice of Anchor Protocol. It provides an APY of roughly 18.5%, which is rather high considering it is provided on the USDT stablecoin. This rate is likely to drop slightly in the coming weeks but is still higher than most DeFi solutions across decentralized finance solutions.
Injective Protocol x Terra
One of the more intriguing announcements is the launch of Terra on Injective Protocol. That might not make much sense at first, although there are several benefits to exploring this option. Injective has a derivatives DEX which will feature Terra’s UST stablecoin and provides LUNA/USDT and UST/USDT spot trading.
Moreover, this collaboration paves the way for making Injective Protocol a hub of UST liquidity on the Cosmos ecosystem. Exploring cross-chain opportunities leads to more exposure, liquidity, and accessibility, which will benefit all parties involved. That also means Terra will gain IBC-related transfer capabilities, which is something worth keeping an eye on.
TerraUSD (UST) Demand Rises
Terra has a native stablecoin, dubbed TerraUSD (UST). It is commonly used in decentralized finance on Terra, although it also gains momentum as a currency on various trading platforms. Moreover, this market cap has risen by nearly $2.4 billion in the past month.
That means its supply has increased by roughly 25% in a month as investors seek more exposure to TerraUSD lately. UST is now the fourth-largest stablecoin in the cryptocurrency industry by market cap. It is still over $5 billion behind Binance USD, and the lead over Dai is under $500 million. Competition keeps heating up in the stablecoin segment, and everything is up for grabs.
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