Harmony and Terra have announced a full-stack collaboration focusing on DeFi activities.
Terra’s Shuttle Bridge technology will integrate Harmony, allowing users to send UST across compatible blockchains.
Since the announcement, the price of ONE has risen significantly, indicating an optimistic outlook.
As part of its vision of a “multi-chain future,” Harmony announced a new relationship with Terra for a “deep integration” endeavor. The cost of ONE and LUNA both increased by 32% and 20%, respectively.
A blockchain network that is both open and quick Terra, the algorithmic blockchain technology for stablecoins, has announced a full-stack partnership with Harmony. The new decentralized finance (DeFi) projects focused at programmable money will be developed by the combined forces.
The two blockchains will connect to create a “vibrant cross-chain financial ecosystem with UST stablecoin and ONEAnchor fixed-rate loan,” according to Harmony founder Stephen Tse.
UST, commonly known as TerraUSD, is the first scalable, yield-bearing, and interchain decentralized stablecoin.
Given the scaling challenges with the popular decentralized stablecoin Dai, TerraUSD addresses the problem via its minting system, which involves burning $1 worth of LUNA to produce 1 UST. TerraUSD is now the market’s fifth-largest stablecoin.
Harmony wants to spread the word about its architecture, and its bridges can link to any proof-of-work or proof-of-stake chain, ensuring low transaction costs. The Terra Shuttle Bridge will be equipped with the platform.
The announcement of the cooperation benefited the Harmony price, adding to the bullish momentum that boosted ONE to a 32 percent gain accompanied by increased trading activity. The asset has broken through the 200-day and then the 50-day Simple Moving Averages (SMAs).
The 50-day SMA now functions as immediate support for the ONE price, as it corresponds with the 23.6 percent Fibonacci extension level. Harmony price might reach $0.101 at the 38.2 percent Fibonacci extension level if it closes above this level on a daily basis, indicating that the cryptocurrency has higher ambitions.
daily chart of ONE/USDT
However, investors should be aware of an imminent death cross, which might invalidate the bullish view if the 50-day SMA crosses below the 200-day SMA. If the ONE bears get control, the Harmony price might fall back into the demand zone, starting at $0.067./n
