Terra completes network update, bridging LUNA with Cosmos, Solana, and Polkadot
- Terra’s upgrade to Columbus 5 is on, expected to bring more scalability and features for projects.
- Columbus 5 is Terra’s most significant one yet since it introduces a new “burn” policy.
- The wormhole, or the bridge between Terra to Solana projects, goes live with Columbus 5.
The Terra ecosystem undergoes major changes with the arrival of Columbus 5. The upgrade brings a slew of developments and features to the protocol.
Columbus 5 is here, Wormhole and Burn policy to be live soon
Terra’s most significant upgrade yet has been set in motion at 3:30 AM GMT on September 30, 2021. The upgrade is bringing three critical changes to Terra. There is a planned upgrade to Stargate, integration of IBC protocol, Ozone, Wormhole and a new burn policy.
These changes are expected to influence the growth of the ecosystem positively.
The most-awaited addition is the ‘Burn policy’. Traders and speculators have awaited the implementation of burn in LUNA.
Proponents expect this new policy to have a similar impact on LUNA as it did on the Ethereum ecosystem, pulling tokens out of the circulating supply by burning them. Furthermore, it is expected to have a positive impact on LUNA price by creating scarcity across exchanges.
LUNA has offered relatively higher risk-adjusted returns than most other cryptocurrencies over the past two weeks in anticipation of Columbus 5 launch. Analysts have compared the altcoin to Solana before its explosive rally.
Mike Novogratz, CEO of Galaxy Investment partners, is enthusiastic on the arrival of Columbus,
$Luna trades amazing. Columbus coming. Same with “Next with Novo” podcast…mostly lots of new projects post Columbus. It reminds me of $SOL pre huge ramp. $BTC and $ETH will consolidate. Just my thoughts. Remember you don’t need to catch everything. Focus on what’s working.
— Mike Novogratz (@novogratz) September 24, 2021
Stargate will enable integration with the Inter Blockchain Communication protocol to facilitate more interchain use cases. As of now, Terra has 8 live protocols, and the number is expected to multiply in the future with Stargate.
UST is expected to emerge as a preferred stablecoin for decentralized applications.
Ryan Watkins, a senior research analyst at Messari Crypto, believes that UST growth will accelerate beyond $2.5 billion in circulation.
In 2021 Terra's UST became a leading decentralized stablecoin reaching $2.5BN+ in circulation.
— Ryan Watkins (@RyanWatkins_) September 15, 2021
With Colombus-5 and Wormhole V2 going live in the coming weeks, UST growth will likely accelerate, setting it up to challenge DAI for the top spot among decentralized stablecoins.
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The introduction of Wormhole and Ozone provides insurance to projects built by Terraform Labs and bridges projects on Terra to Solana. When UST moves between both networks, analysts expect further integration and collaboration between projects on both blockchain networks.
The launch of the wormhole triggered an explosive rally in Solana. It is therefore considered as a key factor that is likely to drive LUNA demand and utility higher.
The team behind Terra will share further updates once the upgrade is complete. Until then, they recommend no interaction with the Terra blockchain.
UPDATE -- The Columbus-5 migration has commenced and is currently underway. DO NOT interact with the Terra blockchain during this period.
— Terra (UST) Powered by LUNA (@terra_money) September 30, 2021
We will immediately relay once the migration is complete and Columbus-5 is live, stable, and accessible by all.
Please stay tuned.
Jay Jaboneta, managing director of DLSL Nexus, expects over 50 protocols to go live on Terra in the following months. Jaboneta tweeted,
And this growth is just with 8 live protocols with 50++ coming in the next few months. $LUNA $UST https://t.co/rSQEVnmuu7
— Jay Jaboneta.UST (@JayJaboneta) September 29, 2021
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
