In this new series, we compare some key crypto assets and how they have fared recently. We also examine the near-term prospects for the tokens. Today, we aim to compare Terra (LUNA) and Avalanche (AVAX), both layer 1 blockchains.
The Proof-of-Stake consensus model is used by both LUNA and AVAX. AVAX is range bound and is therefore likely to push higher faster than LUNA because it has much more to shed.
What is Terra (LUNA)?
The decentralized stablecoins used by Terra, a public blockchain protocol, enable a thriving ecosystem. A DeFi ecosystem that produces stablecoins is built on the Terra blockchain. Luna (LUNA) and TerraUSD (UST), the native tokens of the Terra network, are currently ranked among the top 10 cryptocurrencies.
Terra employs LUNA to maintain stablecoin prices. To keep its peg, Terra encourages trade between Luna and UST. The Proof-of-Stake model is used by Terra. According to the number of coins they possess, the validators in this model verify transactions. By staking LUNA, validators and delegators can profit. In the middle of the Ukraine crisis, when most cryptocurrencies showed a bearish performance, LUNA attained its all-time-high of $119.
What is Avalanche (AVAX)?
Another blockchain platform that is successfully challenging Ethereum is called Avalanche. With the help of its Avalanche Consensus Protocol, Avalanche aims to combine quick transactions with a highly scalable trading environment. It can process up to 4,500 transactions per second. Additionally, the Classical and Nakamoto consensus protocols’ benefits are combined in the Avalanche Consensus Protocol. The native token of Avalanche is AVAX. With a market capitalization of $13 billion, it is the 13th largest cryptocurrency. Between Avalanche’s numerous subnets, AVAX serves as the fundamental unit of account.
Avalanche users require AVAX to pay network transaction fees. In contrast to Ethereum, where the gas fee is split between being burned and being paid to the miners, the fee for Avalanche is entirely burned. Proof-of-Stake is the consensus method used by Avalanche. AVAX holders must stake their coins to validate AVAX transactions. Users who actively participate in validating new Avalanche blocks and have the highest staked AVAX coins are more likely to be selected as validators for those blocks. To have the ability to vote on proposals for Avalanche governance, users must also own AVAX.
Also Read: Crypto Compare Guide 2023 – Exchanges, Wallets, Tokens & More
PROS and CONS of AVAX Vs LUNA Coin
Pros:
| AVAX | LUNA |
| Avalanche’s goal is to solve the blockchain trilemma, which is one of its distinctive features. | LUNA the rebranded version of the crashed LUNC token has been created to help recover the losses of investors and also an attempt to bring the crypto project on the map. |
| For faster transactions without sacrificing scalability, it uses three different blockchains. | It combines the borderless benefits of crypto with the price stability of fiat currencies. |
| Avalanche has enhanced interoperability with other blockchains that want to join the Avalanche ecosystem thanks to its modular design. | Particularly in the Asia-Pacific region, it has numerous partnerships with payment platforms. |
Cons:
| AVAX | LUNA |
| False Validator Activity Is Not Punished, Weakening Blockchain Security. | The Terra community is fearful, uncertain, and anxious as a result of the LUNA crash. |
| Avalanche is an extra-expensive token. A full token may not be available for purchase by investors with low risk appetites. | The new LUNA recovery project hasn’t been able to increase its value significantly. |
| An Avalanche Validator Costs Money To Hire. An individual must hold 2000 AVAX to qualify as a validator. which equals approximately Rs. 39,400,000. |
LUNA Or AVAX – Which Coin Will Bounce Soon?
Blockchains at Layer 1 include Terra and Avalanche. The overall stablecoin reserve in cryptocurrency is anticipated to increase as a result of Luna Foundation Guard’s announcement that it will buy AVAX tokens worth $100 million. Both LUNA and AVAX use the Proof-of-Stake consensus model. Both the coins have so far shown huge potential to emerge as promising altcoins of the future. AVAX will be range bound and therefore likely to push higher faster, whereas we believe LUNA has much more to shed.
Summary
Consider the utility of both coins, the perspectives of the projects supported by LUNA and AVAX, and the Terra vs. Avalanche transaction time when comparing LUNA and AVAX. These details will help you to see whether these cryptocurrencies are going to grow in value or, on the contrary, will drop.
FAQs
What Are the Purposes of LUNA and AVAX?
Both types of cryptocurrencies, LUNA and AVAX, are used to support their respective blockchains. On well-known exchange platforms, they are also traded.
Why LetsExchange.io is the Best Place to Convert Terra to Avalanche?
Without issues or restrictions, you can exchange your cryptocurrency here. You can rely on the best rates, the absence of required account registration, and other advantages in addition to the highest level of safety.
