Should you invest in Terra (LUNA) after its Columbus-5 upgrade?

By: Milko Trajcevski
Milko Trajcevski
Milko leverages his passion for cryptocurrencies and teaches investors something new each day. During his spare time, he loves… read more.
on Oct 1, 2021
  • In the last 24 hours, the market cap of Terra (LUNA) increased by 9%.
  • Its circulating supply also increased by 10%.
  • The token has the potential to climb over it's all-time high value.

Terra LUNA/USD is a stablecoin-powered payment platform and serves the role of a next-generation blockchain network.

The Columbus-5 upgrade as a catalyst for growth

On September 13, we covered the Terra (LUNA) project before the mainnet upgrade.

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On September 30, the Columbus-5 upgrade officially went live as the new Terra Mainnet.

The upgrade has major ramifications intended for the Terra ecosystem.

Columbus-5 can stimulate the demand for Terra and UST, the Terra USD token, by opening it up to new networks as well as decentralized projects.

This deflationary aspect should also pump up the price a bit, assuming things go according to the intended roadmap.

 This is due to the fact that Terra uses two assets, which is good for UST and LUNA. 

UST leverages a second token known as LUNA to maintain nearly equal value as the U.S. dollar.

LUNA is minted when demand for UST is low and burned when the said demand rises. That being said, The Columbus-5 upgrade comprises a few technological changes to Terra. 

There is also a forthcoming Wormhole bridge intended to connect Terra and the Solana network, which makes the UST stablecoin usable within the SOL ecosystem.

Should you invest in Terra (LUNA)?

On October 1, Terra (LUNA) had a value of $37.66.

To get an indication of how exactly this token has grown in value and what kind of potential it has for future growth, we will be going over it’s all-time high value as well as its performance in September.

Looking at its highest value point in September, it was achieved on September 11 when the token reached a value of $43.82. This price point was the token’s new all-time high value.

That being said, its lowest point was on September 21, when the token reached a low value of $25.

Here, we can see that from it’s all-time high to September 21, the token dropped in value by $18.82 or by 75%.

That said, from the value it had on September 21 to the value it had on October 1, the token rose in value by $12.66 or by 50%.

At this pace, the token has the potential to rise to $54.60 in value by the end of October, making it a worthwhile investment.

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