Terra (LUNA) has surged during the past week after a period of consolidation as the network has begun burning the supply of its native token. As of press time, LUNA trades at $51,16 with a 5% loss in the daily chart. Related Reading | Why The Terra Ecosystem Delayed A Major Mainnet Upgrade For Late September Yesterday, before Bitcoin and major cryptocurrencies dropped from new-all times highs, LUNA started a breakout to the upside and seem ready to breakthrough the resistance at $54. However, the rally was spoiled by the flash crash and LUNA was rejected near the mid area around its current levels. The rally seems drive by the implementation of 3 major upgrades on the Terra mainnet. As NewsBTC reported 3 weeks ago, the network was ready to introduce the Colombus-5 and Wormhole v2 with the Inter-Blockchain Communication (IBC) protocol upgrade. The first of these 3 improvements COL-5 was set to implement a deflationary mechanism for LUNA. In addition, the upgrade was designed to increase Terra’s interoperable capabilities. In the past year, tokens with a burning supply system have seen great appreciation. For example, Binance Coin (BNB) rose from the low $50 and reached an all-time high above $600. Ethereum and its recently integrated EIP-1559 is another example. The network changed its fee model to burn a portion of ETH with each transaction. LUNA could follow a similar path with $80 as a potential reasonable target for LU...
