Terra’s native cryptocurrency Luna has joined the list of cryptocurrencies that have so far delivered impressive gains during the second bullish wave in 2021. The coin set a new all-time high at $33.50 last week before some pullbacks but the bulls are back in control, pushing it to a new all-time high today.

Luna achieved a new ATH today after peaking at $34.66 earlier today. It is currently trading at $33.69 after rallying by 18.18% in the last 24 hours, bringing its weekly gains up by more than 30%. The Luna coin has been on a strong upward trajectory ever since the current bull market began, propelling it from its July low of $5.58. This means Luna has so far rallied by roughly 520% in less than 6 weeks.

Source: Binance

Luna’s market cap is currently at $13 billion with a 24-hour volume of more than $1.7 billion. Buying volume has dominated during its price pump especially after the cooling-off that happened earlier this weekend. The slight correction allowed the bulls to recharge, thus paving the way for another strong rally this week. Interestingly, the cryptocurrency is currently recovering from being oversold during the weekend’s price correction according to the RSI, which means there is still some room for more gains even at its current price tag.

Why is Luna rallying?

There are multiple reasons why Luna is heavily bullish this week. The first major reason is the demand for the Terra network especially now that the market is rallying. The Terra ecosystem is broad and has token burn and mint mechanisms for its stablecoins, as well as tokens in its mirror protocol. Another main growth driver for the token is the upcoming Columbus-5 and Bombay-09 network upgrades. Network upgrades are often considered catalyst events and as such, there is usually a bull run in the network’s native token a few days or weeks before the upgrade happens. The bigger the upgrade, the bigger the order of magnitude by which the token rallies.

Luna developers launched the Bombay-09 testnet on August 13 and the Columbus-5 mainnet upgrade is scheduled to take place in the second week of September. The upgrade will change some of the network’s reward mechanisms. For example, part of the seigniorage will be burnt while some of the community pool will receive a share of the network rewards. Dividend swap fees will also be shared out to oracles that deliver a high-quality performance, rather than being subjected to token burn.

What to expect from Luna moving forward

Luna’s latest performance is nothing short of impressive and there might still be some room for more gains considering that it is still not overbought. The upcoming update might also continue boosting its rally but that will be subject to whether the global crypto market will maintain its bullish trajectory. In that case, there is a possibility that it will cross the $40 mark and potentially rally some more. However, another major retracement might undo some of Luna’s recent gains, and is a possibility in the event of FUD-inducing news.