The growing interest in stablecoins, new partnerships and the improving state of the wider market back LUNA’s newfound bullish momentum.
Altcoins continue to move higher while the price of Bitcoin (BTC) remains trapped in the $31,000 to $36,000 price range.
The predictable range appears to be helping Terra (LUNA), a blockchain protocol that specializes in fiat-pegged stablecoins like TerraUSD (UST) to power a price-stable global payment system.
LUNA/USDT 1-day chart. Source: TradingView
A quick scroll through the project’s Twitter feed indicates that the team behind LUNA has been busy as the month of June was full of protocol upgrades as well as new partnerships and integrations.
Some of the major developments for the Terra ecosystem include the launch of Mirror V2, the addition of Terra farming opportunities on Dfyn and the listing of LUNA on the Crypto.com exchange.
Support from Terraform Labs provides a boost
Price action for Terra received a boost on July 7 after Terraform Labs (TFL), the company behind the Terra blockchain, committed to using 50 million Terra SDT (SDT) worth roughly 70 million UST from the TFL stability reserve fund to capitalize the yield reserve for Anchor protocol (ANC).
TFL will be capitalizing Anchor's yield reserve using 50 million SDT (~70 million UST) from the TFL Stability Reserve Fund.
— Terra powered by Luna (@terra_money) July 7, 2021
Supporting Anchor and the Terra community is the mission of TFL, which includes ensuring the long-term interest and success of the Terra ecosystem. https://t.co/5369ZCQZuv
This was done in order to provide enough time to introduce more types of collateral and self-sustainable protocol improvements that are due to be released in the coming weeks as part of Anchor V2.
The move will also help keep the rate offered to UST stakers on the Anchor protocol at 20%.
Partnerships highlight stablecoin demand
Another possible source for the current bullish momentum came after the team announced a full-stack partnership with Harmony (ONE) protocol that will enable the migration of UST to the Harmony ecosystem.
We're excited to announce a full-stack partnership with @terra_money, working together to grow both the @harmonyprotocol and @terra_money #DeFi ecosystems https://t.co/lCDgPdSSHI @Cointelegraph ( @d0h0k1) pic.twitter.com/iAnKdUqryx
— Harmony (@harmonyprotocol) July 7, 2021
This partnership highlights the growing demand for reliable and secure stablecoins that are capable of operating across multiple blockchain networks to help conduct operations and facilitate ecosystem expansion.
Cointelegraph Markets Pro signals that something is brewing
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for LUNA on July 3, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ Score (green) vs. LUNA price. Source: Cointelegraph Markets Pro
As seen in the chart above, the VORTECS™ Score for LUNA began to climb into the green zone on July 3 and registered a high of 75 on July 4, around 35 hours before its price began to increase 36% over the next two days.
The rising interest in integrating with the Terra ecosystem is a recent example of the growing significance that stablecoins play in the wider cryptocurrency ecosystem, a trend that continues to grow stronger as new participants enter the crypto space.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Aptos holders gear up for likely APT price decline ahead of $195 million token unlock

Aptos, a Layer 1 blockchain token, is heading towards a scheduled token unlock event. on Tuesday, December 12, 24.8 million APT tokens worth $195 million will be unlocked. The token unlock is a key event as it is likely to influence APT price.
Synthetix price shows continued strength as SNX supply on exchanges drops

Synthetix, a decentralized asset issuance protocol, is used for staking rewards and community voting. The token yielded nearly 17% weekly gains for holders, and on-chain metrics point to a continued bullish outlook for SNX.
Pro-XRP attorney slams former SEC Chair, XRP price plummets in market wide crash

The SEC v. Ripple lawsuit is making headlines again as pro-XRP attorney John Deaton criticizes former SEC Chair Jay Clayton for his comments on the court ruling. Clayton believes that the initial issuance of XRP tokens was a securities transaction in the capital raising phase.
Bitcoin braces for volatility-filled week with November CPI data release, Fed decision

Bitcoin is likely to experience heightened volatility this week with the upcoming release of November CPI data. BTC price suffered a correction of nearly 4% in the past 24 hours, ahead of the key macroeconomic events scheduled for the week.
BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice

Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.