Why Is Terra (Luna) So Resistant To Crypto Meltdown That Is Inflicting Misery On Bitcoin, Ethereum Holders?

Why Is Terra (Luna) So Resistant To Crypto Meltdown That Is Inflicting Misery On Bitcoin, Ethereum Holders?

Terra LUNA/USD has risen nearly 14% in the span of the last 30 days, despite major cryptocurrencies showing lackluster performance in the same period.

What’s Moving? The token associated with the blockchain protocol, which uses fiat-pegged stablecoins to underpin global payment systems, rose 5.96% over 24 hours to $57.86 at press time. Over a seven-day trailing period, LUNA has fallen 14.89%. 

Against Bitcoin BTC/USD and Ethereum ETH/USD, the top two coins by market capitalization, LUNA rose 3.65% and 4.68% respectively over 24 hours.

LUNA touched an all-time high of $78.19 in early December. At press time, it traded 26.12% below that level.

See Also: How To Buy Terra (LUNA)

Why Is It Moving? Since the beginning of the month, LUNA has withstood the downwards pressure exerted by the current correction in the market.

LUNA has declined 9.9% since Dec. 1, while BTC and ETH have fallen 15.85% and 16.32% respectively since that date.

Delphi Digital, an independent research boutique, attributed the burning of LUNA each day since the start of December as the reason for its resilience. 

Largescale Cryptocurrencies Vs. Luna (MTD Basis) — Courtesy Delphi Digital

“Upcoming launches of Astroport and Mars Protocol have also likely contributed to LUNA’s recent outperformance,” wrote Delphi Digital, in a note seen by Benzinga.

Astroport is pitched as a liquidity hub for the Terra Decentralized Finance ecosystem, which empowers users to choose different pool types with a single automated market maker system. Mars is a market protocol that is purpose-built for the Terra ecosystem.

On Tuesday, Astroport tweeted that 100 million TerraUSD UST/USD of total liquidity was added to the lockdrop — which went live on the same day.

LUNA did not see high interest on Twitter, as per Cointrendz data. It attracted 1,006 tweets at press time. 

The two most mentioned coins on the social media platform, Bitcoin and Dogecoin, attracted 9,931 and 6,190 tweets, respectively.

Read Next: Bitcoin, Ethereum Stable Ahead Of Key Fed Presser, Dogecoin Goes On A Moon Ride — Courtesy Elon Musk

Posted In: BitcoinBlockchainEthereumStablecoinsTerraCryptocurrencyNewsMarketsMoversTrading Ideas

Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month