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The Terra (LUNA/USD) price is hovering near its all-time high as its ecosystem expands and after the recent Columbus-5 launch. The LUNA token is trading $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 11th biggest cryptocurrency in the world.
DeFi ecosystem expands
Terra is a blockchain project that is built to expand. To some extent, the network is similar to Ethereum in that it helps people build decentralized applications (DAPPs). LUNA is like ETH, meaning that it is the native token for the ecosystem.
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In the past few months, Terra has moved from “nowhere” to become one of the biggest blockchain projects in the world. It has achieved this by attracting more developers into the ecosystem. For example, data compiled by DeFi Llama shows that 8 DeFi platforms have been built using its network.
While the number of these DeFi platforms is less than that of other projects like Polygon and Avalanche, the total value locked (TVL) is substantially higher. DeFi platforms built in Terra have a TVL of more than $11 billion, making it the fourth-biggest after Ethereum, Binance, and Solana.
The biggest 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 rose because of the recent upgrade from Columbus-4 to Columbus-5. This upgrade introduced several important dimensions in its ecosystem. Some of the top changes introduced were simplifying the treasury module logic, dividend swap to oracles, and mempool prioritization. At the same time, Terra has launched a $150 million grant program to attract additional developers.
Terra price prediction
The four-hour chart shows that the LUNA price has formed a break and retest pattern. This happened after the price jumped above the previous all-time high of $44.57. It then retested this level, which is a bullish catalyst.
The bullish view is still being supported by the 25-day and 50-day moving averages while the Relative Strength Index (RSI) is forming a bearish divergence pattern. Therefore, because of the break and retest pattern, there is a possibility that the price will keep rising in the near term.
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