Avalanche and Terra Luna

Now get a comparative analysis of the newest members in the top 10 cryptocurrencies- Avalanche and Terra Luna

Cryptocurrencies are becoming ubiquitous, and are dominating the fintech industry in the current age. The most popular cryptocurrencies are alluring to investors who are investing in diverse cryptocurrencies to expand their portfolios. This article provides a comparative study of the newest members in the top 10 crypto-Avalanche and Terra Luna. 

Avalanche is a blockchain-based platform decentralized application. Ranked at the fastest smart contracts platform as measured by time-to-finality, Avalanche is attracting thousands of developers. It is also said to be cheaper and eco-friendly, which are features that attract investors. The smart contract platform supports Defi projects, digital collectibles, and other institutions that need blockchain technology, including governments. The wide market adoption is another factor making the project attractive to investors. The team’s hinting on a Dex, a new marketplace overhauled token comic in Q1 2022, is also driving the current surge.

Terra prices have been on the rise since day 1 of 2022. The biggest reason for the surging LUNA price is the increased attention from the crypt community. The team has developed a program that uses fiat-pegged stablecoins to protect token holders from high price fluctuation. Token holders can easily swap Luna and stable coins like the U.S. dollar, South Korean won, and Mongolian tugrik to avoid losses. The Terra 2022 roadmap is designed to increase the project utility, and investors like it. The coin price is expected to keep rising in the coming days.

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). 

While 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 utility is generally not as good as Avalanche's and is expected to maintain its relatively lower utility for the foreseeable future. This might explain why it is less popular among users, despite being relatively older compared to Avalanche. 

LUNA coins are about equal or cheaper to send compared to AVAX, but their transaction speed is about three times slower than that of Avalanche. Terra is about ten times less decentralized than Avalanche. This indicates LUNA is less trustworthy compared to AVAX but does not necessarily mean Terra is less secure.