Terra network currently boasts of 73-on chain projects, even as its native token LUNA, grows to over $22 billion at the beginning of March.
Terra, with its native token $LUNA has outperformed other smart contracts-based blockchain networks such as BNB Chain (formerly known as Binance Smart Chain), Fantom, Avalanche, and crowd favorite Solana, despite an industry-wide downturn caused by geopolitical tensions in Eastern Europe between Russia and Ukraine. Terra, another layer 1 Ethereum, has seen a price increase in its native token.
This increase can be attributable to two factors: first, the Luna Foundation Guard announced that it had successfully secured $1 billion to establish a Bitcoin reserve for its token USD ($UST) stablecoin project. The start of its secolock droptop event, which coincided with the release of the Mars Protocol, effectively drove demand for the $LUNA token, which is the second cause for the continued rise.
In effect, Terra Network’s $1 billion in Bitcoin reserves for its stablecoin protocol opened the path for Anchor Protocol, Terra Network’s platform for minting UST. It accomplishes so by accepting pledges in either $LUNA or $ETH. The Anchor Protocol, meantime, has revealed that it is working on interfaces that will allow Avalanche’s $AVAX to be included as a collateral option for the minting of $UST stablecoins. Anchor Protocol’s $ANC has increased by at least 260 percent since its inception and is now trading at $4.3 after hitting a critical resistance level.
“Now that Columbus-5 is live, more than 60 projects are preparing to launch in the next six to eight weeks, and more than 100 have recently announced plans for the end of the year or early 2022,” shares Terra co-founder Do Kwon, during the launch of Columbus-5, which effectively introduced deflationary pressure for $LUNA and provided better integration with existing or even competing blockchains.
Terra’s Growth
Terra, which was founded in 2018, has aided in the adoption of digital assets, particularly in the decentralized finance (DeFi) sector, where it presently hosts over 73 projects and counting. Its burgeoning ecosystem continues to attract new firms and independent developers working on protocols and decentralized applications (dApps).
