Cryptocurrency

Terra (LUNA) vs Avalanche (AVAX): Comparative Analysis

Snapshot:

  • What is Terra (LUNA) coin?
  • What is an AVAX token? 
  • Terra (LUNA) vs Avalanche (AVAX) Analysis
  • LUNA vs AVAX Price Trends
  • Should you buy a LUNA coin or AVAX token
  • How to invest in Terra (LUNA) cryptocurrency and Avalanche (AVAX) token 

Terra (LUNA)  Vs Avalanche (AVAX): Comparative analysis 

What is Terra (LUNA)?

Terra is a blockchain protocol using fiat-pegged stablecoins to empower stable global payment systems. Terra is a unique combination of price stability and wide adoption of fiat currencies offering affordable and fast settlements. 

The development of the Terra blockchain began in 2018 and its official mainnent got launched in 2019. As of today (December 24, 2021), the price of Terra (LUNA) is $100.25. Its TVL value recently hit an ATH of $20billion surpassing the Binance smart chain. 

The native token of the Terra network is the LUNA coin. It is used to stabilize the protocol’s stablecoin prices. The holders of the LUNA coin are also eligible to submit and vote on the governance proposals thus, it also acts as the governance token for the network. The stablecoins pegged to the Terra network are South Korean Won, US Dollar, Mongolian tugrik, and the IMF’s special drawing rights basket of currencies. The developers intend to launch additional options too. 

Additional Read: Top Crypto Updates: Terra Luna Token Hits ATH at $20 Billion & more.

What is Avalanche (AVAX) cryptocurrency? 

Avalanche is a layer 1 blockchain protocol that behaves as a platform for decentralized applications (DApps) as well as custom blockchain networks. The main competitor of the avalanche cryptocurrency is Ethereum. The native token of the avalanche blockchain system is AVAX. The primary goal of this blockchain protocol is to dethrone Ethereum from the seat of the most popular blockchain for smart contracts. 

The advantage of AVAX over Ethereum is its high transaction output without any compromise with its scalability. It can process up to 6500 transactions every second without affecting its scalability. The unique architecture of Avalanche makes it possible. There are three different and individual blockchains each having a distinct purpose. The X-chain, P-chain, and C-chain have distinct use-cases as well as different consensus mechanisms based on their use cases. 

Avalanche has been working on developing its DApps and DeFi ecosystem after its mainnet launch in 2020. Some of the projects that have integrated with Avalanche are TrueUSD and SushiSwap.

 

Additional Read: What is Dapp? Top 5 Dapps 2021

Terra (LUNA) vs Avalanche (AVAX): Key Takeaways 

The unique features of the Terra (LUNA) coin are: 

  • Terra is a fiat pegged stablecoin powering blockchain system.
  • It combines the borderless benefits of cryptocurrencies with the price stability of fiat currencies.
  • It has established numerous partnerships with payments platforms especially in the Asia-Pacific region.

The unique features of the AVAX token are:

  • The purpose of Avalanche is to resolve the blockchain trilemma.
  • It has three different blockchains to enhance transaction speed without compromising scalability.
  • The modular structure has helped avalanche improve the interoperability with the other blockchains that wish to integrate with the Avalanche ecosystem.

Terra(LUNA) vs Avalanche (AVAX): Analysis 

Comparison Basis  Terra (LUNA) Avalanche (AVAX)
Launch date  2019 2020
Founders Daniel Shin and Do Kwon  Emin Gun Sirer, Kevin Sekniqi, and Maofan “Ted” Yin 
Blockchain protocol  Terra network  Avalanche blockchain 
Token type  Native  Native
Use case It’s a fiat pegged stable coin and acts as a governance token for the LUNA coin holders.  It is working on the development of its own ecosystem of DeFi and DApps. 
Market Cap* $36,774,996,477 $29,491,381,341
Circulation Supply** 366,849,149.27 LUNA 243,211,253.36 AVAX
Consensus method Delegated Proof-of-stake (DPoS) Proof-of-stake (PoS)

MarketCap* and Circulation Supply** as of December 2021

Source: CoinMarketCap

Terra (LUNA) & Avalanche (AVAX) Price Trends (Monthly)

LUNA vs AVAX

Additional Read: Terra Luna Technical Analysis & AVAX Technical Analysis 

LUNA vs AVAX: Which cryptocurrency should you invest in?

Terra (LUNA) sets itself apart from other fiat pegged stablecoins by combining the benefits of cryptocurrencies with the usually used fiat currencies. It uses an algorithm to keep a one-to-one peg. This algorithm adjusts automatically the supply of the stablecoin based on the demand. It performs this by incentivizing the LUNA cryptocurrency holders to swap their LUNA coins and stablecoins at profitable rates as and when required to contract or expand the stablecoin supply. 

Terra has been in the news lately for breaking all its records and has performed remarkably well especially in the months of November and December. It has also established partnerships with payment platforms in the Asia-pacific region. The Terra Alliance group that supports the network consists of a group of platforms and businesses advocating Terra adoption. 

On the other hand, avalanche cryptocurrency attempts to solve the blockchain trilemma that poses as a major roadblock for the large-scale decentralization of blockchain. The main drawback of this is high gas fees which are often seen in the case of Ethereum. To resolve this issue AVAX token network has three interoperable blockchains namely the Exchange chain (X-Chain), the contract chain (C-Chain), and the platform chain (P-chain). 

All three blockchain networks have their own use-cases and purposes. The division of the computing task makes the throughput higher without compromising the scalability of the network. Avalanche has also improved the interoperability with various other networks willing to integrate with the avalanche system. On top of this, there are two different consensus mechanisms designed by keeping the different blockchains in mind. This further enhances the efficiency of the network. The current(December 24, 2021) avalanche token price stands at $121.26.

The choice of the blockchain network and cryptocurrency is entirely based on the investor’s preference and analysis. Various factors such as the adoption of the crypto project on a large scale, use-cases, risk involved, volatility, etc must be kept in mind by the investor before choosing any of the cryptocurrencies. We always recommend DYOR (Do your own research) before investing in any cryptocurrency as they are subject to market risks like any other investment tool. 

Additional Read: Terra Luna Price Prediction 

How to invest in both Terra (LUNA ) and Avalanche (AVAX) token 

Investing in crypto is super simple, safe, and secured with CoinDCX app. It doesn’t matter whether you want to invest in the LUNA coin or the AVAX token, we have got you covered.  Wondering where to buy LUNA coin? CoinDCX is India’s safest and simplest crypto exchange for your one-stop purchase of any cryptocurrency. 

Here are the 3 simple steps to buy your first token with CoinDCX. 

  1. Sign up on CoinDCX 
  2. Link your bank details 
  3. Buy Terra (LUNA) or Buy AVAX token 

Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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