Terra (CCC:LUNA-USD) is seeing a lot of interest in the last couple of weeks thanks to optimistic sentiment; many investors think the Luna crypto — one of the largest cryptos by market capitalization — will be one of the next cryptos to explode before the end of the year. The network’s newly announced updates can surely catalyze this price explosion. We’ve had altcoin spring and DeFi summer, but are we looking at a Terra autumn?
Terra is a network that seeks to provide users with “programable money.” It hosts a series of synthetic fiat currencies, whose supply and demand fluctuate in order to retain their price stability. The network is anchored by Terra’s Luna crypto, which can (and does) fluctuate in price, unlike the synthetic currencies.
The crypto recently climbed its way up to the spot of 11th largest crypto by market cap, thanks to general altcoin bullishness, pushing it above giants like Uniswap (CCC:UNI-USD). It is also surging beyond previous all-time highs, spurring interest in technical analyses into the coin. But while gains might be largely speculative to this point, the network’s coming upgrade is enough to justify its current prices.
Terra Upgrades Seek to Benefit the Luna Crypto
Crypto research group Delphi Digital’s founder José Maria Macedo is quite bullishly calling the coming months “Terra autumn,” and he cites the looming Columbus 5 upgrade as the catalyst for such a season.
To say the upgrade has broad appeal would be an understatement. The Columbus 5 fork will create an entirely new network for Terra. Primarily, the upgrade seeks to simplify token swapping, which is a primary use of the ecosystem. It will also introduce token burning. This means LUNA holders will have supply-and-demand catalysts on their side as long as they hold onto their coins.
The upgrade also plans to introduce “TeFi” functionality to the blockchain — Terra’s version of decentralized finance. Thus, users will have the added benefits of yield staking and lending; both tools will provide easy ways to earn passive income on long-term holdings.
According to Terra’s Twitter account, the upgrade is set to take place on Sept. 30. LUNA is gaining 27% this morning as the news breaks. Additionally, trading volume of LUNA is up 28%.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
