• Terra (LUNA) will launch over 160 projects early next year

  • Terraform Labs, the South Korean company behind the blockchain project Terra (LUNA), is continuing to prioritize developer activity on the network.

    Meanwhile, as the launch of the Inter-Blockchain Communication (IBC) protocol and Wormhole support for Terra approaches, the true impact of the network’s cardinal upgrade, dubbed Columbus-5, remains unknown.

    There are 160 more projects on Terra.

    Columbus-5 successfully launched in late September, and the network’s developers claim that Terra’s ecosystem is on the verge of exploding.

    “Now that Columbus-5 is live, over 60 projects are preparing to launch in the next six to eight weeks, and over 100 have recently announced plans for the end of the year or early 2022,” Do Kwon, co-founder and CEO of Terraform Labs, told AsiaMarkets.

    Kwon went on to explain 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 in the interview.

    “More projects on Terra diversify and amplify demand for UST, hastening the expansion of stablecoin supply and accruing value to LUNA holders,” Kwon said.

    What does the future hold for UST?

    Terra’s native stablecoin, UST, is currently the fifth-largest stablecoin in terms of market capitalization.

    The algorithmic stablecoin maintains a nearly equal value to the US dollar by leveraging Terra’s utility token, LUNA.

    “Regulatory action against centralized stablecoin incumbents like USD Coin (USDC) and Tether (USDT) has re-emphasized the importance of a decentralized stablecoin in crypto like UST,” Kwon explained.

    “Because custodial stablecoin models do not scale well and serve as risk hubs in a decentralized financial stack,” he clarified, “we expect increased adoption of decentralized stablecoins in the coming months and years.”

    Wormhole and IBC

    The implementation of the Inter-Blockchain Communication (IBC) protocol is expected to open Terra up to a plethora of dApps in the Cosmos (ATOM) ecosystem, while also allowing UST to seamlessly hop between chains.

    IBC enables sovereign chains to connect and communicate with one another, allowing tokens to be transferred between Cosmos and other IBC-compatible blockchains.

    “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 throughout the industry,” Kwon added, emphasizing the significance of the upcoming bridge, which is expected to significantly reduce friction for UST moving from one blockchain to another.

    “We fully expect the demand for UST in cross-chain environments to accelerate the expansion of UST supply even further, potentially reaching the $10 billion market cap mark by year’s end,” he added, a bold prediction given stablecoins’ current market cap of $2.74 billion.

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