Terra (LUNA) has been trending as the team goes full force with developments of the blockchain. Terra had been gaining since the end of June; however, the bullish momentum was overtook by the bears in the market. At the time of writing, LUNA crypto stands at a price level of $ 6.79. The price has decreased by 4% in the past twenty-four hours while the trading volume has also declined.
Why is Terra (LUNA) going upwards?
The Terra blockchain utilizes stablecoins to power the global payment system. The proposition of Terra makes it unique as it combines the efficiency and speed of cryptocurrencies with the stability of fiat-pegged stablecoins to power the payment systems. The development team of the blockchain has been busy which coupled with an increasing interest in stablecoins resulted in a price rally for Terra (LUNA).
Terra has entered into a one-stack partnership with Harmony (ONE) which resulted in furthering the bullish trends of both cryptocurrencies. Both the platforms have agreed to join forces to explore DeFi initiatives together. Under the partnership, Terra will add Harmony to its Shuttle Bridge platform which will enable users to send Terra’s UST stablecoin across other blockchains. UST can be migrated to Harmony and used in applications on Harmony’s blockchain.
Terraform Labs – the firm behind Terra (LUNA) – has also announced to utilize 50 million Terra SDT from the firm’s reserve fund for Anchor Protocol. The role of stablecoins in the cryptocurrency ecosystem is also increasing exponentially which has resulted in a boost of Terra (LUNA).
Is Terra (LUNA) a good long-term investment?
Given the recent performance of the cryptocurrency, Terra (LUNA) appears to be a good investment. Moreover, the development team is highly reputable and the offering of the blockchain unique. The technicals for LUNA coin are also going strong – with a bullish outlook. According to the estimates of Wallet Investor, Terra (LUNA) will be standing at a price level of $60 in five years’ time. Although a word of caution, the cryptocurrency market is highly volatile and anything can happen.