To the moon? Terra's luna crypto coin has shot up almost 80% in a week, vaulting past shiba inu and avalanche
Albert Garnelis/Getty Images
lunacryptocurrency has gained around 80% in a week, making it bigger than either shiba inu or avalanche.
- A network upgrade and upcoming changes to how users report their tax liabilities have driven the surge.
The gains have come thanks to a combination of falling supply of tokens, and a series of changes in how the coin is used in its own payment network.
AdvertisementLuna's even overtaken dogecoin-darling shiba inu and "
This week, investors voted to allow community funding for an overhaul of the network's "TrackTerra" tax and reporting app. That will allow luna holders to export transactions to different tax software programs, according to a tweet from developer Terra.
The US government is tightening the rules around tax liabilities stemming from cryptocurrency transactions. This was one of the catalysts that knocked bitcoin, ether and other major coins lower in November, when Joe Biden's infrastructure bill — which includes regulations for crypto — passed into law.
Luna has been one of the strongest-performing major
Its network rolled out a major upgrade last month, aimed at better maintaining the peg of the TerraUSD to its fiat value. In turn, that resulted in over 93 million luna tokens being "burned," effectively vanishing from circulation, according to FX Leaders analyst Aiswarya Gopan.
AdvertisementPart of luna's popularity is coming from the rapid evolution of
JPMorgan currency strategist Nikolaos Panigirtzoglou flagged Terra's advantages relative to some rival protocols in a recent research note.
"Terra is a stablecoin-issuing platform using a mechanism that minimizes volatility to achieve close peg of the issued stablecoins to fiat currencies," he said.
Advertisement"This mechanism, operating via dynamic expansion and contraction of token supply, issues several regional stablecoins that can be swapped, making the Terra platform particularly suitable for cross border payments," he added.
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