The central theses
- Terra’s LUNA token hit an all-time high of $ 100 today.
- LUNA’s bullish price action follows similar moves from Solana and Avalanche, two other Layer 1 projects.
- The three tokens, collectively referred to as “SOLUNAVAX” by crypto traders, soared in 2021.
Share this article
Amid the ongoing hype about Layer 1 blockchains, Terras LUNA hit $ 100 for the first time. The asset’s price development follows a similar trajectory as Solana and Avalanche, both of which have risen sharply in recent months.
Terra reaches $ 100
Terra benefits from the Layer 1 hype.
The stablecoin-focused blockchain is home to one of the fastest growing DeFi networks with a variety of popular apps including Anchor Protocol, Mirror Protocol, Terraswap, and Astroport. Its native token, LUNA, is currently leading a Christmas rally in the market. It hit $ 100 for the first time today after rising over 50% in the past week. It has since cooled down and is trading at $ 96.53 at press time.
LUNA’s move up comes amid a period of bullish momentum in the market following Bitcoin’s rebound from $ 45,700 to $ 51,200.
Source: TradingView
On Monday, LUNA broke previous resistance levels at around $ 75 on the daily timeframe. LUNA has since encountered psychological resistance at $ 100.
Several recent developments have acted as catalysts for LUNA’s bullish momentum. While LUNA has risen, the total value locked on Terra has exceeded $ 21 billion, aided in part by the Astroport exchange’s ongoing token lockdrop. Terra now holds the second highest total value locked in DeFi, trailing just behind Ethereum.
LUNA’s price trend exactly followed that of two other Layer 1 coins: Solanas SOL and Avalanches AVAX. Both SOL and AVAX also experienced a parabolic rally in the second half of the year, reaching new all-time highs in November. Ethereum’s soaring gas fees, generous token incentive programs, and the market’s growing confidence in a multi-chain future can all explain the rise in Layer 1 coins.
Source: TradingView
While several Layer 1 networks have grown in prominence in recent months, Terra, Solana, and Avalanche were three of the top performers in the last two quarters of the year. The trend has resulted in several traders coining the term “SOLUNAVAX” in terms of market strength and the rotations they have made between each coin.
Of the three, LUNA is the biggest winner of 2021. According to data from CoinGecko, it was trading at $ 0.65 on Jan 1st, meaning it was posting a 14,670% gain. Solana’s SOL is up 7,800%, while Avalanche’s AVAX is up 3,300% year-to-date.
Still, all three coins outperformed the two leading cryptocurrencies by a margin. Bitcoin is up around 76% this year while Ethereum is up 446%.
Disclosure: At the time of writing, the author of this article owned ETH, SOL, and other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources that we believe to be correct and reliable, but Decentral Media, Inc. makes no representations or warranties as to the timeliness, completeness, or accuracy of any information on this website or their access via this website. Decentral Media, Inc. is not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be or become out of date, incomplete, or inaccurate. We may update outdated, incomplete, or inaccurate information, but we are under no obligation to do so.
You should never make an investment decision on an ICO, IEO or any other investment based on the information on this website and you should never interpret the information on this website as investment advice or rely on it in any other way. We strongly encourage you to consult a licensed investment advisor or other qualified financial professional when seeking investment advice on an ICO, IEO or any other investment. We do not accept compensation in any form for analysis or reporting on ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
What is terra The blockchain for stablecoins explained
Terra is a smart contract blockchain that aims to provide an ecosystem for algorithmically controlled, seigniorage-based, fiat-linked stablecoins in a decentralized manner. Terra Unpacked Terra is a blockchain protocol and …
Terra Token LUNA sets another new all-time high
Terra’s market cap is now $ 13.6 billion. Terra with new record high Terra has burst into tears. The fast-growing blockchain’s LUNA token hit a price of $ 34.25 for the first time.
Web3 – What it is, what it means and how we’re going to make the move
We are at the beginning of a new era of the internet. Little by little, this new digital world and everything that it enables is becoming part of …
Layer 1 coins lead market rally after Fed meeting
Avalanche, Fantom, Kadena, Terra and other Layer 1 coins have seen double-digit gains today. Layer 1 projects rally at Fed Meeting Layer 1 projects are again leaders in the market. To…
Comments are closed.