Terraform Labs, the South Korean company behind the Terra (LUNA) blockchain project, is continuing to prioritize developer engagement on the network.
Meanwhile, the full impact of the network’s major improvement, termed Columbus-5, is yet to be determined, as the debut of the Inter-Blockchain Communication (IBC) protocol and Wormhole support for Terra nears.
Columbus-5 was successfully introduced in late September, and the Terra ecosystem, according to the network’s developers, is on the cusp of spectacular growth.
Over 60 projects in the offing
“With the introduction of Columbus-5, over 60 projects are ready to launch in the next six to eight weeks, and over 100 have recently stated plans to launch by the end of the year or early 2022,” Do Kwon, co-founder and chief executive officer of Terraform Labs, told AsiaMarkets.
Kwon emphasized how the upgrade, which opened up endless opportunities for the ecosystem’s expansion, is about to improve Terra’s stablecoin use case while increasing the value of the native token.
“More projects on Terra diversify and increase the demand for UST, boosting the expansion of the stablecoin supply and accruing value to LUNA holders,” Kwon explained.
The 5th largest stablecoin
The UST, Terra’s native stablecoin, is the fifth-biggest stablecoin in terms of market valuation. The algorithmic stablecoin maintains a nearly similar value to the U.S. currency by utilizing Terra’s utility token, LUNA.
“Regulatory action against established centralized stablecoins such as USD Coin (USDC) and Tether (USDT) has re-emphasized the importance of a decentralized stablecoin in crypto, like UST,” Kwon pointed out.
Due to the fact that custodial stablecoin models are inefficient at scaling and act as risk centers in a decentralized financial system, Kwon said they anticipate growing adoption of decentralized stablecoins in the next months and years.
The incorporation of the Inter-Blockchain Communication (IBC) protocol is expected to open Terra up to a plethora of decentralized applications (dApps) in the Cosmos (ATOM) space, while also allowing UST to hop between chains smoothly.
Image courtesy of Cointelegraph News/YouTube