Terra (LUNA) becomes 9th largest crypto following network upgrade

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Last Updated on 19 December 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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The crypto market has been uneventful for most cryptocurrencies. For Terra (LUNA), it is one of the best times. The asset recently became the 9th largest cryptocurrency by market capitalization following a soft fork and network upgrade.

The cryptocurrency was consistently rising but in the last two days LUNA pushed Polkadot out of the top ten cryptocurrencies. It further rose to the 9th position after displacing Avalanche (AVAX), another cryptocurrency that recently joined the top ten.

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Terra (LUNA) pumps 80% following upgrade

Cryptocurrencies have dipped generally in the last few weeks. However, LUNA has been on the path to recovery, although most of the cryptocurrencies are still down. It has gone up 82% in the last 48 hours from $62 to over $74, a move that has pushed it up the ladder of crypto ranking.

This pump is coming just days after the Terra network upgrade and soft fork which was supported by Binance. The upgrade may have contributed to the phenomenal pump as previous upgrades have.

One upgrade in October this year known as Columbus 5 caused the asset to hit a $38 billion market cap. As a result of the upgrade, all burnt LUNA coins are permanently burnt, unlike before when they were sent to the community pool. This will reduce supply eventually and increase the value of the asset.

The upgrade also integrated the Inter-Blockchain Communication (IBC) protocol of Cosmos, making it compatible with many decentralized apps (dApps) from Cosmos blockchain. Indeed, the support for more dApps and a deflationary burn for LUNA are two factors that can cause the asset’s value to rise and this has been the trend since then.

Trend may change

While LUNA’s jump to the top ten was mostly because of the sudden pump, it is also partly because the other cryptocurrencies are still down. If the trend changes and these top assets start to pump as well, LUNA will need to keep rising to maintain its new spot. Otherwise, Polkadot, Avalanche and even others lower may reclaim their positions, thus pushing it back down again.