Market

These factors help AVAX and LUNA to storm FUD. to survive

Bitcoin price fell nearly 10% amid the market slump following news of a crypto ban in China. Accordingly, the entire market collapsed, which also led to a bloodbath for most of the top altcoins. However, some altcoins show resistance to FUD, lose little and stay strong compared to the others. AVAX and LUNA rank 11th and 12th, respectively, in terms of market capitalization.

LUNA 4-Hour Price Chart | Source: Tradingview

Notably, AVAX was down just 1.99% versus ATH on September 23rd, while LUNA was down 21.02% versus ATH on September 11th. Although prices fell, they were largely unaffected by the market crash. Why so?

AVAX 4-Hour Price Chart | Source: Tradingview

Good growth path

Both AVAX and LUNA showed good growth in the last month. Avalanche’s Locked Value (TVL) increased from $ 312 million on August 18 to $ 2.6 billion on September 14, while daily transactions increased from 43,243 on August 22 to 220,222 on September 12 .

In addition, the worldwide spread of TVL in DeFi through various blockchains as of September 17th shows that AVAX and LUNA have a pretty solid foundation. Terra accounts for 4.7% of TVL while AVAX accounts for 1.5%.

The source: statistics

In addition, the indicators generally offer a healthy outlook. The AVAX futures market looks positive as the open interest (OI) on futures and perpetuals continues to rise. The open interest change in 24-hour futures for AVAX is up 6.79% while perpetuals are open 3.85%.

On the flip side, it appears that LUNA’s recent surge in the percentage increase in total whale-held stablecoin supply of over $ 5 million may have acted as a buffer during the recent sell-off. The numbers were up nearly 35% from September 19.

LUNA price (green) and percentage of total stablecoin supply from whales over $ 5 million (pink) | The source: Sanbase

NSwhat next?

The bullish performance of the above two altcoins can also be attributed to external factors such as Terra’s Anchor Protocol, which hit $ 4 billion on September 22nd, just 6 months after its inception. On the other hand, AVAX’s price has also risen impressively since Avalanche closed a private sale and raised $ 230 million.

Notably, both tend to increase significantly in terms of market capitalization and capitalization dominance. However, at the time of writing, AVAX and LUNA prices have both fallen nearly 6% over the day. It appears that the market crash is affecting these tokens, but not until a little late. However, the price is still holding the higher levels of support and that is a good sign.

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Minh Anh

According to AMBCrypto

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.