Terra’s native token LUNA rallied over 31% during the past seven days as the crypto’s price broke another record high crossing $34,3 earlier today.

With a current market cap of roughly $13,4 billion, LUNA witnessed a significant recovery since the May crash, when it was trading just above $4.1.

The Terra ecosystem  

Terra is a decentralized blockchain platform founded in 2018 by South Korean firm Terraform and its native token LUNA is largely used for stabilizing the price of the protocol’s stablecoins and for incentivizing the platform’s validators.

While being the algorithmically-governed stablecoin platform’s native token, LUNA is elemental for the entire Terra ecosystem, which keeps rapidly expanding.

Key projects on Terra include Anchor, a decentralized (DeFi) savings protocol that offers yields on stablecoins and the synthetic asset protocol Mirror that enables investing in tokenized stocks and trading synthetic assets, which can also be added to liquidity pools.

With only six protocols, Terra recently surpassed Polygon (MATIC), recording the third-highest total value locked (TVL) among blockchains.

While experiencing a 12.87% increase in the past seven days and currently recording $6,58 billion TVL, the platform keeps reaffirming its place at the very top, falling behind the ultimate chieftains among blockchains, Ethereum with $115.2 billion TVL and 201 protocols and Binance Smart Chain with $18.73 billion and 70 protocols.

Major upgrade coming

Columbus-5, a major mainnet upgrade that is close to unraveling, has plenty in store for Terra’s flourishing ecosystem.

One of the most important upgrades of the Terra blockchain to date is set to simplify the system’s tokenomics while burning seigniorage and making the native token LUNA even more deflationary.

In addition, the upgrade will enable further integration, while opening the floodgates for a multitude of protocols and dapps. 

The upgrade to Columbus-5 on the Terra mainnet will enable an anticipated implementation of Inter-Blockchain Communication Protocol (IBC).

The introduction of IBC for the Cosmos Ecosystem is anticipated to further boost Terra’s use case.

With TerraUSD (UST) already being the fifth largest stablecoin by market cap, it’s impossible to predict how high LUNA will climb following the critical launch.

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