Blockchain

This is Why Terra (LUNA) Is The Real Ethereum Killer, Here’s What On-Chain Report Say

Author: Nidhi Kolhapur

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Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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On April 21, Terra’s LUNA token fell below the psychological resistance level of $100, but the bulls did not allow the price to go below the 20-day EMA ($91), which is a slight positive.

The purchasers will try to push the LUNA/USDT pair beyond $100 once more. If this happens, bullish momentum might ramp up, and the pair could climb above $119, it’s an all-time high. At this point, the bears are expected to launch a formidable resistance.

If the price falls below the current level or the overhead resistance at $100, the chances of a breach below the support at $88 become more likely. If the price stays below this level, the pair might fall to $75, which is solid support. A break and closure below the 200-day SMA ($68) could indicate a shift in trend. 

Is LUNA the ETH Killer?

The most potent danger to Ethereum (ETH) in the decentralized finance scene during the first quarter (Q1) of 2022 has been revealed by blockchain market data source CryptoCompare.

According to a new study from CryptoCompare, Ethereum’s total value locked (TVL) – the amount of all staked crypto assets that generate interest and other benefits – is flat.

Despite slow growth and a current TVL of $150 billion, Ethereum has retained its dominance (at 55.6 percent) (down 20.8 percent from the end of 2021, Q4). This stagnation can be linked in part to the poor performance of crypto assets during the quarter, but it can also be related to the heated rivalry among alternative layer 1 protocols.

Terra (LUNA), a blockchain protocol primarily focused on hosting algorithmic stablecoins, was the most successful in taking on Ethereum in 2022, according to CryptoCompare.

“Over the previous three months, Terra has proven to be the most successful Ethereum challenger, with a quarter-over-quarter TVL rise of more than 72.0 percent to $35.2 billion, continuing the Solunavax narrative from 2021.”

The acronym Solunavax stands for Solana (SOL), LUNA, and Avalanche (AVAX), three of the most prominent Ethereum competitors.

The excellent returns on Terra’s fixed yield platform, Anchor Protocol, are attributed to the growth in Terra’s TVL, according to the cryptocurrency market data provider.

Terra’s flagship stablecoin UST generates a 19.46 percent yearly percentage payout when staked on Anchor Protocol. 

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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