LUNA recently underwent a successful upgrade to version 2.3.1, thanks to a strong showing of support for Proposition 4717. While the Terra community celebrated the milestone on Twitter, on-chain metrics tell a different story.
Blockchain development activity has seen a steady decline over the past two months, which has raised concerns about the future growth and adoption of Terra.
With the blockchain world evolving rapidly, can Terra find a way to reverse this trend?
A bearish forecast for the LUNA device
Terra’s LUNA coin is currently $1.21 CoinMarketCap, with a 24-hour trading volume of $38,388,955. Unfortunately, the last 24 hours have been very difficult for the cryptocurrency, as it has seen a 4.29% drop in value.
despite of Rise up for 2023, LUNA has failed to regain momentum, and as of this writing, the coin is down more than 40% year-to-date (YTD). Indicators indicate that the outlook for LUNA is bearish.
Photo: Business Today
The Relative Strength Index (RSI) has fallen below the neutral level of 50, indicating that selling pressure is strong. Moreover, the Moving Average Convergence Convergence (MACD) cross has shown a bearish cross, which indicates the beginning of a downtrend.
Terra’s latest update brings the Alliance unit to the Mainnet
Terra upgrade to version 2.3.1 It introduces a host of new features, including the integration of the Alliance module into the main Terra network. The open source Cosmos SDK facilitates economic alliances between blockchains through interchain staking, enabling chains to add assets from other networks or native applications without permission.
🎉 Terra has been officially upgraded to version 2.3.1 and is producing blocks! This upgrade includes a variety of new additions, including Alliance 🤝
Read the full details of the proposal here 👇https://t.co/C0OZsF0qzx
– Terra powered by LUNA 🌕 (@terra_money) April 20, 2023
Alliance supports staking for many tokens, including stablecoins, LP tokens, and liquid staking derivatives, making it a flexible tool for the ecosystem.
Terra hopes that Alliance integration will attract more users, liquidators and developers to its network. However, the scales on the chain tell a different story. Despite the upgrade, Terra development activity is declining, with weighted sentiment turning negative.
Total market cap of cryptocurrencies currently at $1.11 trillion on the weekend chart at TradingView.com
This indicates that investors are still suspicious of LUNA. With the blockchain industry still evolving rapidly, Terra may need to work harder to stay competitive.
Despite the decline in development activity and negative investor sentiment towards LUNA, the integration of the Alliance module into the Terra mainnet is a step towards a more resilient and inclusive blockchain ecosystem.
Terra hopes that this upgrade will attract more users, developers, and liquidity to the platform, eventually leading to growth and widespread adoption.
Only time will tell if this integration will bring the desired results for Terra and its community.
Featured image via The Coin Republic