Ethereum Rival Terra Could Reach New ATHs – Key Catalysts For LUNA’s Surge

The optimistic predictions about the prices of cryptos are not stopping at only Ethereum and Bitcoin. They also involve some of the most essential ETH competitors as well.

Speaking about ETH, at the moment of writing this article, ETH is trading in the red, and the coin is priced at $2,529.

According to the latest reports, the crypto intelligence firm IntoTheBlock is revealing the catalysts that pushed Ethereum (ETH) challenger Terra (LUNA) to new all-time highs.

Just to refresh your memory, Terra is a decentralized finance (DeFi) payment network, allowing users to mint stablecoin Terra USD (UST) by burning its native asset LUNA.

As the online publication the Daily Hodl notes, UST holders have the option to deposit their Terra USD stacks to lending platform Anchor Protocol (ANC) and take advantage of its 19.5% annual percentage yield (APY).

The crypto insights firm made sure to explain the fact that Terra’s economic setup has fueled the ascent of LUNA during times of market uncertainty.

Key catalysts that pushed LUNA to the moon:

One of the factors that pushed LUNA to the moon is the following:

“A $1 billion fundraise from the Luna Foundation Guard (LFG) to build Bitcoin reserves to support UST – the Terra ecosystem’s stablecoin – peg to the dollar.”

The second key catalyst is this:

“LFG replenishing the Anchor protocol’s yield reserve with $450 million, used to provide depositors with a rate of 19.5% on UST.”

And last, but not least, another factor that led to the surge in price of LUNA is this:

“Increased demand for UST (mostly to obtain these high rates) has resulted in a vast amount of LUNA being burnt, effectively reducing its supply.”

IntoThe Block also notes that Terra saw massive growth but this could not be sustainable without some important changes. Check them out in the original article.