Terra (LUNA) has seen a tremendous rise over the past week as it tries to correct the recent price drop that resulted from the recent crypto market plunge. At the time of writing, it was trading at $56.30 after a 2.4% rise in the last 24 hours.
LUNA is the native token of Terra, a blockchain protocol that uses fiat-pegged stablecoins to influence the price of global payment systems. It has a trading volume of $1,202,143,126, a circulating supply of 400 million LUNA coins, and a total supply of 819 million.
Let’s now focus on why the Terra (LUNA) has been rallying in the last seven days.
Forces behind current Terra (LUNA) price rise
One of the reasons behind the current uptrend is the announcement of Terra’s sports sponsorship deal with Major League Baseball’s (MLB) Washington Nationals, a major milestone for the growing blockchain that can be termed as the first-ever decentralized autonomous organization (DAO) vote on sports sponsorship deal in history.
According to last week’s formal proposal from the DAO on Terra’s governance platform to the LUNA community, Terra offered $38.5M for a five-year sponsorship deal for the Nationals.
In the proposal they said:
‘’We started dedicated sports coverage at Bitcoinist last year, and we can firmly say we’ve never seen a sports sponsorship deal quite like this one. It is the first time we’ve seen a community vote through a DAO mechanism – most certainly around a deal secured with a ‘big 4’ league (which consists of the NFL, MLB, NHL, and NBA) in North America… ’We’ve covered quite a bit of ubiquitous sports sponsorship and partnership deals throughout the past year or so, and admittedly, an MLB team was not on our shortlist. The NBA has arguably been the leader in crypto-related deals, including a league-wide deal with Coinbase, and vocal team owner advocates, such as Mark Cuban. Additionally, other headline deals, such as Crypto.com’s acquisition of the downtown Los Angeles arena naming rights, and the NBA’s broader initiatives into blockchain-related properties (think Dapper Labs and Top Shot) have given the league a particularly unique position.’’
MLB has previously worked with Candy Digital and Topps around NFTs; however, the team’s specific deals have been few and the same applies to the NHL and NFL which have also shown limited engagement in blockchain and crypto so far.
For Terraform Labs and Terra, it’s a unique move not only because of the league but also because of its location in the US policymaking, Washington DC.
The deal comes at a time when Terra’s UST stablecoin has established itself as the leading decentralized stablecoin. Terra ecosystem is longing to establish growth that will go beyond the blockchain’s flagship Anchor Protocol product.
In a statement released by the Nationals, Terraform Labs founder Do Kwon stated:
“By approving this sponsorship deal, the community has a new way to engage and educate the public, including the policymakers doing important work in Washington, D.C., about decentralized money and the burgeoning technology that underlies it.”
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