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4 reasons LUNA might not stop at $ 100 if Terra Ecosytem continues to expand – CryptoMode

It was an exciting month for fans of the Terra ecosystem and the native cryptocurrency LUNA. Both aspects have seen tremendous growth and are showing no signs of slowing down. While many expect LUNA to cross the $ 100 mark soon, Terra’s overall growth appears to be favoring even higher values.

LUNA goes up to $ 100

In the past few weeks, LUNA, the native currency of the Terra ecosystem, has shown enormous upside potential. A 110.2% increase in the last 30 days is incredibly impressive, especially since most crypto markets have been stuck in a bearish period recently. It’s unclear why sentiment remains negative for Bitcoin and Ethereum, but it doesn’t affect Terra’s LUNA too much these days.

Source: CoinGecko

With LUNA up over 54% this week, it seems like a matter of time before it hits $ 100 or more. There is strong resistance near this price level but that is to be expected. That said, overall momentum for this asset remains rather bullish, even if other markets bounce back slightly. The final week of 2021 could bring fascinating momentum to most currencies.

Strong partnerships are essential

One of the critical components of Terra’s success is the number of partnerships this project has secured. For example, after LUNA was listed on Kraken, Terra announced collaborations with NEAR and Aurora. Partnerships like this will increase the visibility of the Terra ecosystem and help to open up new use cases, products and services in the future.

Anker maintains a high yield

Since Terra is home to several well-known DeFi protocols, productive agriculture enthusiasts should look out for the Anchor Protocol. It offers an APY of around 18.5%, which is pretty high considering it is provided on the USDT stablecoin. This rate is likely to decrease slightly in the coming weeks, but is still above most DeFi solutions in decentralized financial solutions.

Injection protocol x Terra

One of the more fascinating Announcements is the start of Terra on Injective Protocol. This may not make a lot of sense at first, although there are several advantages to exploring this option. Injective has a derivative DEX which contains Terra’s UST stablecoin and offers LUNA / USDT and UST / USDT spot trading.

In addition, this collaboration paves the way for the Injective Protocol to become a hub of UST liquidity in the Kosmos ecosystem. Exploring cross-chain opportunities leads to increased engagement, liquidity, and accessibility that benefit everyone. That also means Terra is getting IBC-related transfer capabilities, which is worth keeping an eye on.

TerraUSD (UST) demand is increasing

Terra has a native stablecoin called TerraUSD (UST). It is widely used in decentralized finance on Terra, although it is also gaining prominence as a currency on various trading platforms. Additionally, that market cap rose nearly $ 2.4 billion over the past month.

Source: CoinGecko

That means the supply is up about 25% in a month as investors have been looking for more exposure to TerraUSD lately. UST is now the fourth largest stablecoin in the cryptocurrency industry by market cap. It’s still over $ 5 billion behind Binance USD and the lead over Dai is under $ 500 million. The competition in the stablecoin segment is getting hotter and everything is up for grabs.

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