Despite opposition from crypto-restricted countries including Algeria, Egypt, China, Morocco, Tunisia, Iraq, Oman, Bangladesh, and Qatar, there are countries like El Salvador, the United States, Canada, and now India that have given green-lit the adoption of digital currency for payment services. Earlier, it was only Bitcoin that garnered massive attention of investors owing to its global fame. But now it does not remain a mania, as today, there are numerous options of alternate coins, or what we popularly say altcoins.
Earlier we used to compare Bitcoin with altcoins. Alternate coins emerged in becoming the best substitute to the foremost cryptocurrency. But most of them failed in their goal and turned into dead coins due to their failure. However, that does not mean altcoins are worthless or cannot stand up to Bitcoin. In 2021, when the latter crypto coin plummeted, it gave a golden chance to altcoins like Ethereum to shine over it.
Well, today, our topic is not based upon Bitcoin vs altcoins, but altcoin vs altcoin – AVAX vs LUNA. We are going to find out which among these digital currencies is good for investment. So let us begin with our exploration.
Terra vs Avalanche: Which digital currency you should choose for investment?
To know the difference between the 2 technologies, it is better to understand them. Since we are going to find out which is the better digital currency to invest in, is it AVAX or is it LUNA? Let us know each of them one by one.
Starting from Terra, one must understand it as a blockchain protocol that finds the use of fiat-supported stablecoins for the empowerment of stablecoin payment systems globally. Terra is a special unification of price stability and acceptance of fiat currencies that provide cheap speedy settlements.
Terra blockchain started its developmental phase in 2018, whereas, its official mainnent came the following year. In 2021 December, $100.25 was the price of LUNA. The total value locked of this coin hit its all-time high at $20 billion crossing over the Binance smart chain. South Korean Won, Mongolian Tugrik, US Dollar are the pegged stablecoins to Terra network.
Coming on to the next competitor is Avalanche. It is a layer 1 blockchain protocol that functions as a platform for DApps and custom blockchain networks. Ethereum is the main competitor to Avalanche (AVAX). Hence, the main motive of this blockchain protocol is to drag it out from the position of popular blockchain for smart contracts. If you ask what makes Avalanche a great competitor to Ethereum, then it is its high transaction output processing up to 6500 transactions, and that too with no effect on its scalability.
Comparison between LUNA and AVAX
- Terra was founded by Daniel Shin and Do Kwon, whereas, Avalanche was founded by Emin Gun Sirer, Kevin Sekniqi, and Maofan “Ted” Yin.
- Both have their native tokens, LUNA for Terra network, and AVAX for Avalanche blockchain.
- Coming on to use cases, LUNA is a fiat-pegged stable digital currency and performs as a government-issued token for the ones having LUNA tokens. In another case, Avalanche is focusing on the creation of its own structure of DApps and Defi.
- The market capital of LUNA is $29,737,497,827, and $19,218,062,842.46 is the market cap of AVAX
- 370 Million is the circulating supply of LUNA, and in the case of AVAX, it is 220,286,577
- Where Terra follows DPoS (Delegated Proof-of-Stake) method, Avalanche follows the PoS (Proof-of-Stake)
Which is the better investment option; AVAX or LUNA?
Where Terra separates itself from the fiat pegged stable cryptocurrencies by unifying the advantages of digital currencies with commonly used fiat currencies. It makes the best use of an algorithm that automatically goes well with the supply of the stablecoin on demand. It does this by providing LUNA holders for swapping their LUNA coins and stablecoins at profitable rates, at the time of contract or expansion of the supply of stablecoin.
Terra made headlines when it broke all records, and has performed tremendously during November and December. Moreover, it has also partnered with payment processing platforms of the Asia-Pacific region.
Coming on to another digital currency, AVAX, it tries to resolve the major blockchain issue that becomes a hurdle for large-scale blockchain decentralization. The main downside is the gas fees which is not affordable as it is higher, and is often common in the case of Ethereum. This has brought the need for AVAX token network has come up with interoperable blockchains – X-Chain (exchange chain), C-Chain (contract chain), and P-chain (platform chain).
When it comes to any particular digital currency or blockchain network, then it is completely based upon the analysis and choice of the investor. But we better recommend you to follow DYOR (Do Your Own Research), because investment in cryptocurrency does not come free from market risk. So be very careful.