Layer 1 coins had some bullish months. Little by little, the last thing that benefits is.
The central theses
- Terra’s LUNA token arrived on Saturday All time high from 100 USD.
- LUNA’s bullish price movement follows similar movements from Solana and Avalanche, two other Layer 1 projects.
- The three tokens, collectively referred to as “SOLUNAVAX” by crypto traders, skyrocketed in 2021.
Amid the ongoing hype about Layer 1 blockchains, Terras LUNA hit $ 100 for the first time. The asset’s price movement 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 on Stablecoin aligned Blockchain houses 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 yesterday 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 after the rebound from $ 45,700 to $ 51,200.
On Monday, LUNA broke previous resistance levels at around $ 75 on the daily timeframe. LUNA has since been at $ 100 on psychological resistance encountered.
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 locked in DeFi and just follows.
LUNA’s price trend exactly followed that of two other Layer 1 coins: Solanas SOL and Avalanche’s 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 rising gas fees, generous token incentive programs, and growing market confidence in a multi-chain future can all explain the rise in Layer 1 coins.
While several Layer 1 networks have grown in importance in the past few months, Terra, Solana and Avalanche have been three of the strongest performers in the last two quarters of the year. The trend has led several coin dealers to coin the term “SOLUNAVAX” in terms of market strength and the rotations they have made between them.
Of the three, LUNA is the biggest winner of 2021. According to data from CoinGecko, it was trading at $ 0.65 on Jan 1st, which means 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.
Source: Crypto News Deutsch