Why Terra Reaches An Unprecedented Level?

Today the price of LUNA has reached an all-time high triggered by the Columbus-5 upgrade on the Terra ecosystem. For comparison, the difference between the lowest price and the highest one for the entire existence of LUNA is 28578%. By the morning, the cost has dropped from $43.40 to $ 41.72. At 6 p.m. it soared to $ 48.8. According to market stats, Terra (LUNA) has a market cap of $19,836,519,039, consequently, its market cap rank is equal to #11.

What Is Terra (LUNA)? Terra DeFi Blockchain Explained | Shrimpy AcademyThe update introduced a “burn policy” to permanently burn LUNA when converting to Terra algorithmic stable coin (UST). The main purpose of Terra’s utility token was to supplement the UST when its value drops below $ 1. LUNA used in the process has been submitted to the community pool. That Upgrade was a game-changer as it meant that the LUNA used as an add-on to the UST would be permanently burned out. Actually, decreasing supply and increasing deflationary pressures cause the token to rise.