LUNA benefits from the Layer 1 blockchain hype

Amid the ongoing hype about Layer 1 blockchains, Terras LUNA hit $ 100 for the first time. The asset’s price development is similar to that of SOL and AVAX, both of which have skyrocketed in recent months.

LUNA hits $ 100 for the first time

LUNA benefits from the hype about Layer 1 blockchains.

Terra is a stablecoin focused blockchain with one of the fastest growing DeFi networks with many popular applications such as Anchor Protocol, Mirror Protocol, Terraswap and Astroport. The indigenous token LUN led the Santa rally when the price hit $ 100 for the first time yesterday after rising more than 50% in the past week. Even so, LUNA’s price action has cooled a bit at press time and is trading at $ 96.8.

The upward move comes during a period of upward momentum in the market after Bitcoin rebounded from $ 45,700 to $ 51,200.

The source: TradingView

On Monday, LUNA broke previous resistance levels around $ 75 on the daily timeframe and encountered psychological resistance at $ 100.

Several recent developments act as catalysts for LUNA’s bullish momentum. As the price rose higher, the Total Value Locked (TVL) on Terra topped $ 21 billion, aided in part by the Astroport exchange’s ongoing token lock. Terra currently has the second highest DeFi TVL, just behind Ethereum.

LUNA’s price trend followed two other Layer 1 tokens such as Solanas SOL and Avalanches AVAX. Both SOL and AVAX rallied parabolically in the second half of the year, hitting new all-time highs in November.

The source: TradingView

While some Layer 1 networks have grown in prominence in recent months, Terra, Solana, and Avalanche were three of the most active in the last two quarters of the year. This trend is so pronounced that some traders are using the term “SOLUNAVAX” to refer to the market strength and capital turnover of these coins.

Among them, LUNA is the biggest winner of 2021. According to data from CoinGecko, it was trading at $ 0.65 on January 1, which is a gain of 14.670%. SOL is up 7,800% while AVAX is up 3,300% so far.

On the other hand, all three clearly outperform the top two cryptocurrencies. Bitcoin is up about 76% this year and ETH is up 446%.

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