Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Terra To Launch Col-5 System Upgrade in September as Luna Hints towards a Price Rise
Terra plans to introduce an upgrade dubbed Columbus-5 on September 9th in a mission to improve the network and create more use cases. This is by far the most significant upgrade the system has ever made. As the days get closer to usher in upgrades, the LUNA coin performs very well in the markets, potentially going higher.
Introducing The Columbus-5 Upgrade
Columbus 5, Col-5 is a new system that may come to light in mid-September, inheriting the Columbus 4 system. Fundamentally, this Columbus 5 presents solutions to problems and new features that expand the Terra network’s capabilities. In addition, however, three major upgrades are coming up.
The first upgrade involves a system that wholly and autonomously burns Seigniorage from the network. Seigniorage is another name for burned LUNA tokens and was used for oracle rewards. However, as the system ushers in Col-5, LUNA may completely be erased from circulation, positively impacting LUNA’s price.
Another feature coming with Col-5 is the Inter-Blockchain Communication(IBC) capabilities. This feature will allow the Terra network to easily interact and support assets from other chains like Solana, Polkadot, and the Cosmos network. Cosmos already interacts with around 250 DApps; indeed, connecting with Terra will increase LUNA’s use cases.
The wormhole and Ozone features are also coming up to bolster the system’s efficiency and security. Ozone mainly creates insurance/leverage in cases of technical failures, thus protecting the assets in the network, including yields. Although there are three significant upgrades, some minor ones will also come in to foster efficiency.
Likelihood of a Price Surge
The mainnet launch of the Col-5 upgrade is nearing and has led to LUNA price increases. The CMC charts show the coin making massive gains in price, gaining at least 74.2% in the past seven days.
Today, LUNA is trading at $25.59, a 19% increase from yesterday’s price of around $22. Luna’s trading volumes shot up by 70.82%, showing how much people have confidence in the coin. In fact, in the past 24 hours, LUNA made a new all-time high of $26.76, which means it surpassed the resistance at $25.
The next long-term resistance associated with the LUNA coin is around $29. However, if the coin increases with the current pace, it could easily surpass that particular resistance and go even further. Especially as the upgrade nears, we could see the coin make new all-time highs from time to time. A reversal trend is possible but highly unlikely at this time.
Upgrades Lead to More Investor Confidence
Recently, the trend of system upgrades has proven to cause price surges. Ethereum’s London Hardfork, which occurred a few days ago, is still driving the coin prices. Cardano’s awaited Alonzo Hardfork is also leading to massive price gains for the coin.
System upgrades lead to more trust/confidence in the crypto world, translating to an increased value of the individual asset and the crypto market.