After the rise of more than 30% in the price of Bitcoin (BTC) and the rise of more than 70% in the value of Cardano (ADA) and Solana (SOL), analysts are attentive to the charts to indicate the next cryptocurrency that it should rise above 50%.
Thus, in a new YouTube video, the trader and analyst of the cryptocurrency market, Lark Davis, affirms that the smart contract platform Terra (LUNA) is the great candidate for a next bullish leg in the market.
Lark says the platform has come a long way in terms of valuation simply by remaining focused on highly desirable applications that are still in their infancy, indicating that further development should be followed by a price hike.
“The important thing is to build things that people want, and that is what Terra has achieved. It is really very, very impressive because Terra’s asset, LUNA … is climbing positions in the market capitalization ranking, with really only three applications on the blockchain. “”
The three apps Davis is referring to are the cryptocurrency lending protocol Ankr (ANKR), the synthetic stock trading platform Mirror (MIR) protocol, and the mobile payments app Chai.
Davis also highlights that a unique feature of the protocol is its native algorithmic indexed stablecoin, called UST. The function requires that the LUNA tokens be removed from supply when a new UST is created.
“What happens when you have dozens of apps running on the LUNA blockchain, all these DeFi protocols that are eager to trade the market are going to need the UST stablecoin, and when that happens, people are burning LUNA for more. UST, “he said.
With this LUNA protocol, in a way, it mimics the update triggered by the London hard fork of Ethereum (ETH) that uses part of the commissions to burn ETH.
However, according to the trader, this is only the beginning of LUNA, as the development team of the project has announced new updates that should make the protocol even more robust and interconnected.
Davis concludes his optimistic thesis covering the next update of the Terra ecosystem, dubbed “Columbus 5”, which will bring more burning system for LUNA tokens, a greater reward for holders who keep their assets at stake among others.
In addition, LUNA is working on an integration, via interoperability, to connect its protocol with Ethereum, Solana and Binance Smart Chain (BSC) as Linear did in its decentralized exchange (DEX).
“As soon as developments are announced, the LUNA token should go even higher as it could be the first truly interoperable protocol and thus usher in a new era for public blockchains,” he said.