- Terra price has jumped to an all-time high.
- Terra Foundation will buy Bitcoin worth $10 billion.
- Astroport has been in a strong bullish trend lately.
The Terra price is trading at its all-time high as investors cheer the strong performance of Astroport. LUNA is trading at $117, which is about 167% above its lowest level this year. At the same time, the Astroport price has jumped by 62% in the past seven days, bringing its market capitalization to over $466 million.
Terra ecosystem growth
Terra has been in a strong growth in the past few months as investors and developers have embraced its platform. As a result, apps built in its ecosystem like Anchor Protocol and Lido have become the biggest players in the DeFi industry.
The main reason why LUNA price is rising is because of Astroport, which is a decentralized exchange built using Terra. It is a platform where people can trade and buy cryptocurrency easily. Its price has surged in the past few days after it unveiled staking and fee share feature.
The first phase will include staking and fee share. In the next phase that will come next week, the developers will launch governance features through the Astral Assembly. Therefore, the Astroport price is rising as investors start earning staking rewards. These fees could be significant since the platform has already earned $12 million in fees since its launch on December 28th.
Terra price is also rising after the recent announcement that the Luna Foundation was planning to buy Bitcoin worth $10 billion. The goal of these funds will be to back its algorithmically adjusted stablecoins. In the long-term, Terra hopes that its stablecoins will be backed by Bitcoin.
Another reason is that Neutrino experienced a major crash this week. Neutrino is a stablecoin built using Waves Protocol. Analysts expect that some of the outflows from Neutrino will move to Terra UST, which has a good track record.
Terra price prediction
The daily chart shows that the LUNA price has been in a strong bullish trend in the past few months. The coin managed to move above the important resistance level at $105, which was the highest level on December 27th.
It has also risen above the 25-day and 50-day moving averages and the ascending trendline shown in green. The Stochastic oscillator has also risen to the overbought level. Therefore, the coin will likely keep rising as bulls target the key resistance at $150.
