A popular crypto trader thinks one particular cryptocurrency is primed to continue its major run-up.
In a new YouTube video, crypto trader and market analyst Lark Davis tells his 417,000 subscribers that he is eyeing the smart contract platform Terra (LUNA) as a major contender for the next leg of the bull run.
Lark says that the platform has come a long way in the rankings by simply staying focused on highly desirable applications.
“The important thing is building things that people want, and this is what Terra has managed to do.
Now it’s actually very, very impressive because the Terra asset, LUNA … at the time of recording this video, was number 22 on CoinGecko. Now it has managed to rise up to be … a top-22 coin, with really only three applications on the entire blockchain.”
The three applications Davis refers to are the crypto lending protocol Ankr (ANKR), synthetic stock trading platform Mirror (MIR) protocol, and mobile payments app Chai.
Davis also highlights a unique feature of LUNA’s native algorithmically pegged stablecoin, UST. The feature requires LUNA tokens to be burned from supply when new UST is minted.
“What happens when we have dozens of applications – all these DeFi protocols that are hungry for that UST stablecoin, and people keep burning up LUNA in order to get more UST.”
In a Twitter thread, Davis concludes his bullish thesis by covering the upcoming update to the Terra ecosystem, dubbed “Columbus 5.”
“Now let’s talk Columbus 5, a major upgrade underway which will:
– Burn all seignorage (more Luna burning)
– Pay more to stakers
– Cosmos IBC integrations
Terra’s Wormhole upgrade will bridge Terra to Ethereum, Solana, and Binance Smart Chain. 3 of the top 5 chains by TVL [total value locked].
Assuming this and more of the same from Terra and I think the price will go much higher.”
At time of writing, Terra is trading at $29.40 and has a market cap rank of 15 on CoinGecko.
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Featured Image: Shutterstock/alexmonge
