Written by Hazel J. Greene, Senior Analyst

The native token of the Terra blockchain, LUNA, has been garnering attention in recent times, despite not boasting the most impressive numbers on the charts. Its notable progress can be seen as quite a feat, especially when considering the network’s inherent challenges. One can attribute the current surge of positive momentum surrounding LUNA to the anticipation surrounding an upcoming and game-changing upgrade slated to go live in just a few hours.

Preparing For a Game-Changing Upgrade:

Terra is on the cusp of a significant advancement with the imminent Phoenix Software Upgrade Proposal, also recognized as Terra Core v2.4.0. The Terra community has actively participated in the voting process, leading to the successful on-chain approval of the proposal, also known as Prop 4737. An overwhelming majority of 98.22% voted “Yes,” with only 1.78% opposing the proposal—a reflection of the community’s engagement and enthusiasm for the proposed changes.

To ensure a smooth transition, Terra’s developers have diligently informed users about an impending temporary halt to the chain’s operations. This notification emphasizes that the chain will experience some downtime during the indicated period. The planned disruption is crucial to minimize potential inconsistencies or disruptions during the upgrade process and has been scheduled to take place at block height 5994365, expecting to occur on July 18 at 1:00 p.m. UTC.

Binance’s Support for the Phoenix v2.4 Upgrade:

In an official announcement, prominent cryptocurrency exchange Binance has confirmed its support for the Terra Phoenix v2.4 software upgrade. To facilitate an uninterrupted transition, Binance will temporarily suspend LUNA deposits and withdrawals one hour before the upgrade. It is important to note that LUNA trading will continue to operate normally throughout the network upgrade.

Market Reaction and LUNA’s Resilience:

Following the announcement of Binance’s support and the impending upgrade, the price of LUNA witnessed a significant surge, experiencing a 10% increase within a few hours. This positive market reaction reflects investors’ confidence and anticipation surrounding the upcoming upgrade. While the price of LUNA briefly dipped by 2.4% after the initial increase, it is currently trading at $0.6368 on Coingecko.

Overall, despite the minor dip, LUNA has showcased strength and resilience, with a notable 6.2% rally over the past seven days. This sustained upward movement in price demonstrates continued market interest and positive sentiment towards LUNA and its potential for growth within the Terra ecosystem.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.