LUNA breaks out to new all-time highs as Terra’s DeFi dollar gains traction

LUNA price has posted a 56% rally over the last 7 days, hitting a new all-time high at $67.87.
The algorithmic-backed stablecoin UST is the largest of its kind, driving Web3 adoption.
Anyswap protocol has announced a partnership with Terra, powering a cross-chain bridge between TerraUSD and Fantom.

As Web3 adoption gathers steam, Terra-powered LUNA hit a new all-time high. LUNA’s daily trade volume has exploded, hitting $2.26 billion today. The Terra ecosystem has announced new partnerships to bridge TerraUSD with layer-2 tokens.

Terra’s LUNA hit a new all-time high

Stablecoins play a key role in the crypto ecosystem. Though controversial, these assets bridge the gap between fiat and cryptocurrencies on exchanges. Terra’s stablecoin TerraUSD (UST) has a market capitalization that has crossed $1.2 billion.

UST is the first algorithmic stablecoin built for e-commerce andhas been dubbed the DeFi dollar. Terra’s ecosystem aims to offer next-generation digital commerce and money through UST and LUNA.

LUNA hit fresh all-time highs three times in the past 30 days, offering holders over 55% gains.

As Web3 adoption increases, Terra’s stablecoin becomes more relevant.

Terra announced the news of its partnership with Anyswap Network. The trustless protocol bridges layer-1 and layer-2 blockchains. UST is now connected to FTM through a cross-chain bridge.

@Terra_money Partnership with @AnyswapNetwork

The cross-chain bridge service between Terra and Fantom is available on https://t.co/ova71Pc3I5!

⬇️ INFO :https://t.co/PfpJ7J1K6E #FantomSpacd
— (@Fantom_Space) December 2, 2021

A new proposal on Injective, a layer-2 decentralized exchange protocol, proposes to enable Terra ecosystem price feeds. The exchange proposes to launch UST pairs for LUNA, Mirror Protocol (MIR) and Anchor Protocol (ANC).

Analysts have a bullish outlook on Terra’s LUNA. @BigCheds, a pseudonymous cryptocurrency analyst, is bullish on the coin.

$LUNA (USDT) though incredibly bullish we must observe:

Note the decreasing size of the real candle bodies of the last 3 completed candles. Representative of decreasing trend strength according to Japanese candlestick theory

Can also argue last 2 candles are high wave pic.twitter.com/r9KJBx4ua5
— Cheds (@BigCheds) December 3, 2021

Over 7.2 million LUNA has been burned in the last week of November, fueling the altcoin’s price rally.

Hayden Hughes, CEO of Alpha Impact, a social-trading platform, told Bloomberg,

Luna’s economics are built to be deflationary, and over the past month we’ve seen 100 million Luna tokens be burned, which removes them from supply forever. This reduction in supply combined with the popularity of Luna staking has created a supply shock that has driven up the value.

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