LUNA recently underwent a successful upgrade to v2.3.1, thanks to a strong show of support for proposal 4717. While the Terra community celebrated the milestone on Twitter, on-chain metrics tell a different story.
Development activity for the blockchain has been steadily declining for the past two months, raising concerns about the future of Terra’s growth and adoption.
As the blockchain world evolves rapidly, can Terra find a way to reverse this trend?
Bearish Outlook For LUNA
Terra’s LUNA coin is currently priced at $1.21 on CoinMarketCap, with a 24-hour trading volume of $38,388,955. Unfortunately, the last 24 hours have been very challenging for the cryptocurrency, as it has experienced a 4.29% decrease in value.
Despite the bullish rally of 2023, LUNA failed to regain momentum, and as of the time of writing, the coin has plummeted over 40% on a year-to-date (YTD) basis. Indicators suggest that the outlook for LUNA is bearish.
Image: Business Today
The Relative Strength Index (RSI) has fallen below the neutral 50 level, indicating that selling pressure is strong. Furthermore, the Moving Average Convergence Divergence (MACD) has shown a bearish crossover, marking the start of a downtrend.
Terra’s Latest Upgrade Brings Alliance Module To Mainnet
Terra’s upgrade to v2.3.1 introduces a host of new features, including the integration of the Alliance module into the Terra mainnet. The open-source Cosmos SDK module facilitates economic alliances among blockchains through interchain staking, enabling chains to add assets from other networks or native applications in a permissionless way.
???? Terra has officially upgraded to v2.3.1 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 various tokens, including stablecoins, LP tokens, and liquid staking derivatives, making it a flexible tool for the ecosystem.
Terra hopes that the integration of Alliance will attract more users, liquidity, and developers to its network. However, on-chain metrics tell a different story. Despite the upgrade, Terra’s development activity has been declining, with the 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 remain skeptical of LUNA. As the blockchain industry continues to evolve rapidly, Terra may need to work harder to stay competitive.
Despite the drop in development activity and negative investor sentiment towards LUNA, the integration of Alliance module into the Terra mainnet is a step towards a more flexible and inclusive blockchain ecosystem.
Terra hopes that this upgrade will attract more users, developers, and liquidity to the platform, ultimately leading to growth and large-scale adoption.
Only time will tell if this integration will bring the desired results for Terra and its community.
-Featured image from The Coin Republic
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Author: Christian Encila