Terra (LUNA / USD) price hovers near its all-time high as its ecosystem expands and following the recent launch of Columbus-5. The LUNA token is trading at $ 45, which is slightly below the all-time high of $ 49. The token has a total market capitalization of more than $ 17 billion, making it the eleventh largest cryptocurrency in the world.
DeFi ecosystem expanded
Terra is a blockchain project designed for expansion. In some ways, the network is similar to Ethereum in that it helps people create decentralized applications (DAPPs). LUNA is like ETH, which means that it is the native token for the ecosystem.
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In the past few months, Terra has grown from “nowhere” into one of the largest blockchain projects in the world. This was achieved by attracting more developers to the ecosystem. For example, data compiled by DeFi Llama shows that 8 DeFi platforms were built with its network.
While the number of these DeFi platforms is fewer than other projects like Polygon and Avalanche, the Total Value Locked (TVL) is much higher. DeFi platforms built in Terra have a TVL of more than $ 11 billion, making them the fourth largest after Ethereum, Binance and Solana.
The largest DeFi platforms in Terra are Anchor, Lido, Mirror and Terra Swap. These four have a TVL of more than $ 1 billion, with Anchor having a dominance of about 38%.
The Terra price also increased due to the recent upgrade from Columbus-4 to Columbus-5. This upgrade introduced several important dimensions to its ecosystem. Some of the most important changes introduced were the simplification of the treasury module logic, the dividend swap in oracles and the mempool prioritization. At the same time, Terra launched a $ 150 million grant program to attract additional developers.
Terra price prediction
The 4-hour chart shows that LUNA price has formed a break-and-retest pattern. It did so after the price jumped above the previous all-time high of $ 44.57. It then retested that level, which is a bullish catalyst.
The bullish view is still supported by the 25- and 50-day moving averages, while the Relative Strength Index (RSI) forms a bearish divergence pattern. Therefore, due to the break-and-retest pattern, there is a possibility that the price will continue to rise in the short term.
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