Avalanche Crypto (AVAX) Looking Stronger Than Terra LUNA Coin

Avalanche and Terra LUNA are two similar blockchains, with an emphasis on decentralized finance (DeFi), although Avalanche works as a platform for decentralized applications (DApps) as well. Terra, on the other hand, is a network that uses stablecoins pegged to fiat currencies to empower a stable payment system, with  South Korean Won, USD, Mongolian Tugrik, and the IMF’s special drawing rights basket of currencies as pegged fiat currencies. They were both launched in 2019 and have made enormous progress.

Terra LUNA  has a market cap of around $19.5 billion and a TVL (total value locked) in DeFi of $15.2. Avalanche has a market cap of $20.6 billion and a TVL of 10.9 billion. So, the TVL/market cap ratio is bigger for Terra, which means that it has a healthier DeFi sector built on it.

Avalanche is a Layer-1 blockchain, which makes it a direct competitor with Ethereum, but it benefits from high transaction output as well as high scalability. Avalanche can process up to 6500 transactions/second (TPS). It is also very eco-friendly, since it was found to use just 0.0005% of the energy used by the Bitcoin blockchain, according to a report from the Crypto Carbon Ratings Institute.

Terra LUNA Daily Chart – Heading for the 200 SMA Again

LUNA coin barely bounced higher and has reversed down again now

AVAX/USD surged from around $10 in August last year to $146 by the end of November, while LUNA/USD continued to surge until late December, both making gains despite the crypto market turning bearish. Although, since the beginning of this year LUNA has turned more bearish than Avalanche.

Terra LUNA retreated from a high of $106 to $43, which means losing around 60% of the value. But, since the strong bearish momentum ended in January, AVAX has been looking stronger than the LUNA coin. It made a strong comeback in the previous weeks, bouncing from $53 to $96, nearly doubling in value, while LUNA barely made it to $60 and is now heading for the lows again.

Avalanche Daily Chart – The 100 SMA Stopped the Climb for AVAX

Avalanche crypto has made more gains than LUNA coin 

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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