Terra (LUNA): Growth and Adoption in a Competitive Landscape
Terra's recent upgrade to version 2.3.1, which was supported by Proposal 4717, was a success. The Terra community celebrated this achievement on Twitter, but the on-chain metrics reveal a different story.
To stay competitive in the fast-evolving blockchain industry, Terra may need to strategize on how to reverse this trend.
LUNA, Terra’s cryptocurrency, is currently valued at $1.26, with a 24-hour trading volume of $31 million. The coin experienced a 3% increase in value in the last 24 hours. Despite the bullish market in 2023, LUNA has not been able to regain its momentum, with a YTD decline of over 40%.
The indicators forecast a bearish trend for LUNA, with the RSI dropping below the neutral 50 level, indicating significant selling pressure, and the MACD displaying a bearish crossover, signaling a downtrend.
Terra recently upgraded to version 2.3.1, which introduced the Alliance module to the Terra mainnet, bringing in various new features. The Alliance module is an open-source Cosmos SDK module that enables economic alliances among blockchains through interchain staking.
🎉 Terra has officially upgraded to v2.3.1 and is producing blocks! This upgrade includes a variety of new additions, including Alliance 🤝
Read the full details of the proposal here 👇https://t.co/C0OZsF0qzx
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) April 20, 2023
The platform facilitates staking for diverse tokens, such as stablecoins, LP tokens, and liquid staking derivatives, in a decentralized manner, allowing networks to incorporate assets from other networks or native applications. Terra hopes that the inclusion of Alliance will attract more users, liquidity, and developers to its network.
READ MORE: Bitcoin: Market Theory Gives Hope to the Bulls
Despite the progress made by the inclusion of the Alliance module, on-chain metrics suggest that investors are skeptical of LUNA due to the decline in development activity and negative weighted sentiment. This may require Terra to work harder to stay competitive in the blockchain industry, which is evolving rapidly.
In conclusion, while there has been a decrease in development activity and a pessimistic view from investors towards LUNA, the implementation of the Alliance module into the Terra mainnet is progress towards an adaptable and inclusive blockchain ecosystem.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
