Over 160 Projects Are Expected to Launch On Terra (LUNA) Early 2022
Korean Terraform Labs – the developer of Terra (LUNA) – focuses on advancing the developer activity on the network.
The true impact of the network’s cardinal upgrade, dubbed Columbus-5, is yet to unravel, as the launch of Inter-Blockchain Communication (IBC) protocol and Wormhole support for Terra comes closer.
Columbus-5 successfully launched in late September and, according to the network’s developers, Terra’s ecosystem is on the verge of an explosive expansion.
Terra's ecosystem sprint into the end of the year is gonna be a sight to behold.
Do Kwon, co-founder and CEO of Terraform Labs, said:
“Now that Columbus-5 is live, more than 60 projects are preparing to launch in the next six to eight weeks and more than 100 have recently announced plans for the end of the year or early 2022”
Kwon also explained how the upgrade, which opened up countless avenues for the ecosystem’s expansion, is about to boost Terra’s stablecoin use case while putting upward pressure on the native token’s value.
“More projects on Terra diversify and amplify the demand for UST, accelerating the expansion of the stablecoin supply and accruing value to LUNA holders.”
What’s next for UST?
Terra’s native stablecoin, UST, is currently the fifth-largest stablecoin by market cap.
While leveraging Terra’s utility token, LUNA, the algorithmic stablecoin maintains a nearly equal value to the US dollar.
Kwon said:
“Regulatory action against centralized stablecoin incumbents like USD Coin (USDC) and Tether (USDT) has reinvigorated the emphasis for a decentralized stablecoin in crypto like UST.
As custodial stablecoin models do not scale well and serve as hubs of risk in a decentralized financial stack, we expect increased adoption of decentralized stablecoins to increase in the coming months and years.”
IBC and Wormhole
The integration of Inter-Blockchain Communication (IBC) protocol, is set to open Terra up to a myriad of dApps in the Cosmos (ATOM) ecosystem while enabling UST to seamlessly hop between chains.
IBC facilitates sovereign chains to connect and communicate with each other, allowing the transfer of tokens between Cosmos and other IBC-compatible blockchains.
Kwon said:
“Similarly, Wormhole is a cross-chain bridge to Solana (SOL), Ethereum (ETH), and Binance Smart Chain (BSC), that enables Terra assets like UST to be seamlessly ported to some of the largest chains by TVL and users in the entire industry.
We fully expect the demand for UST in cross-chain environments to accelerate the expansion of the UST supply further, potentially reaching the $10 billion market cap mark by year’s end.”
