LUNA overtakes ADA on the chart, next is XRP?
A week ago, LUNA, along with XRP and Cardano, were both struggling amid the broader market downtrend. However, that all changed on February 21 when the altcoin started to explode. Soon, it was even generating returns for its investors, surpassing Cardano’s market cap.
Terra is on the rise
In the past eight days, LUNA is up 85.25%. After falling around 104.59% year-to-date, the altcoin has now pared all of its losses.
LUNA is currently trading around the $94 zone, having last touched this zone on Jan 1. But that’s not all, the price increase is also in line with the increase in market capitalization. In fact, that number has grown from $19.4 billion to more than $35 billion.
Market Cap Terra | Source: TradingView
On the other hand, Cardano is losing its share of the market cap. Even yesterday’s rally added only $3.6 billion to its capitalization. Meanwhile, LUNA’s market cap has increased by $7 billion in 24 hours.
With that, LUNA has officially usurped Cardano and climbed to 8th place. XRP’s position could follow next.
Like Cardano, XRP has not made any notable progress. Yesterday’s 8% gain has only boosted the market cap by $3 billion. Right now, LUNA is only about $1.5 billion away from XRP’s position.
Ripple Market Cap | Source: Coinmarketcap
Disadvantage of XRP
XRP’s weakness likely comes from its lack of support from DeFi.
Terra not only dominates in the crypto market but also in the DeFi market. Currently, Terra hosts 21 applications totaling more than $23 billion.
Here’s what’s missing from XRP. Because of this, Terra is threatening XRP’s position despite its widespread global adoption.
From the looks of it, XRP investors have had a pretty rough run for weeks and are looking for ways to turn their losses into profits. Yesterday’s bull run was her chance and many long-time owners took advantage of it.
In 24 hours, addresses storing XRP over 340.43 days (long-term holders) moved and sold billions of tokens in the market.
Long-term holders move and sell tokens | Source: Santiment
However, this is the highest return the network has seen in the past 2 months.
XRP network gains after 2 months | Source: Santiment
At the moment it is unclear if yesterday was just a rally or the start of a sustained rally. Therefore, the only option is to watch the market for the next 48 hours and confirm whatever happens.
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