Terra takes steps to revive LUNA, but ghosts from past continue to haunt

• Despite the upgrade, Terra’s on-chain metrics revealed a continuing drop in development activity.
• The bullish rally of 2023 failed to reinvigorate LUNA as it fell 40% on a YTD basis.

Following a resounding vote in favor of proposal 4717, Terra [LUNA] was officially upgraded to v2.3.1 as per an update provided by the blockchain’s official handle on Twitter.

Read Terra’s [LUNA] Price Prediction 2023-24

The upgrade will include a variety of new features, with the most prominent being the integration of Alliance module into the Terra mainnet.

Terra: An ‘Alliance’ for the future

Alliance is an open-source Cosmos SDK module that leverages interchain staking to form economic alliances among blockchains. Using this, chains can add tokens from other networks or from native applications as Alliance assets in a permissionless manner.

With flexibility in mind, the module was created to support staking for any token, including stablecoins, LP tokens, and liquid staking derivatives (LSDs). Terra hoped that the new integration would bring in more users, liquidity and developers to the tainted ecosystem.

However, a look at Terra’s on-chain metrics revealed a continuing drop in development activity over the last two months. This was concerning, as a dip in development activity could potentially impact growth and, subsequently, large-scale adoption.

The weighted sentiment plunged into negative territory, revealing that investors were still not very hopeful of the native token, LUNA.

Source: Santiment

LUNA was still not out of the woods

The bullish rally of 2023 failed to reinvigorate LUNA. At the time of writing, the coin exchanged hands at $1.27, having plummeted over 40% on a year-to-date (YTD) basis.

Indicators painted a bearish picture for LUNA. The Relative Strength Index (RSI) dipped below the neutral 50 level, indicating that selling pressure was strong. The Moving Average Convergence Divergence (MACD) revealed a bearish crossover, signaling that start of a downtrend.

Source: Trading View LUNA/USDT

Read Price Prediction for Terra (LUNA) 2023-24

Do Kwon in more trouble

In another development, Terraform Labs co-founder Do Kwon was reportedly issued indictments by Montenegro authorities for document forgery, as per a report by Bloomberg Law.

This comes days after the fugitive entrepreneur was arrested and charged by U.S. regulators for orchestrating a multi-billion dollar securities fraud.

Kwon has been the target of several investigations and was even on Interpol’s red notice after stablecoin Terra USD [UST] and its $40 billion ecosystem imploded last year, sending shockwaves across the crypto markets.