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The service token LUNA of the Terra blockchain completed yesterday’s session with an update of historic highs. The cryptocurrency added 60% in value in ten sessions, breaking into the top 10, and its DeFi ecosystem ranked second in terms of attracted TVL investments, overtaking Binance Smart Chain.
Terra’s success will now be reflected in the price of the NEAR blockchain token, as well as the ATOM altcoin, the utility cryptocurrency of the Cosmos blockchain.
The LUNA token is used as collateral for the issuance of the UST stablecoin, whose pegging rate to the fiat dollar is regulated by the issue of this service cryptocurrency. The utility cryptocurrency began to grow steadily when the Terra developers decided to burn collateral tokens. LUNA becomes sharply smaller when the cryptocurrency market falls, which ensures the growth of the rate when the demand for stabilcoins increases.
UST was locked onto the Terra blockchain until Monday, when developers NearPad and Aurora brought the digital currency into the NEAR ecosystem. The token is now available for wrapped issuance through the Rose protocol. This Aurora liquidity add-on works with all kinds of stablecoins transferred to NEAR from the Ethereum blockchain.
UST and LUNA owners can host these assets on Terra in Allbridge pools for transmission over this bridge network to Rose. The wrapped version of UST can be “frozen” and exchanged through the NearPad DEX exchange, which opens access to any DeFi project on the NEAR blockchain.
Following the publication of this news, the utility cryptocurrency NEAR has renewed all-time highs, climbing to 26th place in the CoinMarketCap ranking.
The Terra blockchain is powered by the Cosmos IBS platform, echoing the idea of Polkadot’s parachains. This interconnected network currently contains 18 independent circuits. In the future, Cosmos developers will provide a simple and reliable way to transfer assets between IBS blockchains, but already now the ecosystem processes up to 1.2 million transactions per month.
Terra’s success is driving the growth of Cosmos, whose token has returned to the top 30 cryptocurrencies, until that moment ATOM had been declining for three months, losing 50% of its value.
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