A week ago, Terra [LUNA] was just above $80 as investors bemoaned its faith. But at press time, the ex-top ten crypto was changing bloodstained hands at $0.00005687.
Naturally, the shock of this fall has many new and confused investors looking at their favorite altcoin projects, wondering if there’s a chance of them heading in the same direction.When Avalanche [AVAX] lost over 30% of its value in a day, this question came up again.At press time, AVAX was the #12 biggest crypto by market cap, and was changing hands at $34.26.
This was after rising by 25.27% in the past day and falling by 40.75% in the last week. So, could AVAX end up in the same position as LUNA?The metrics show this is unlikely, for a number of reasons.First and foremost, it’s important to remember that Avalanche does not have a relationship with an algorithmic stablecoin that can be compared to TerraUSD [UST] and Terra [LUNA].
LUNA was meant to help absorb UST fluctuations, but both currencies have since collapsed. Avalanche is not even remotely in a similar situation.AVAX development activity had fallen at press time, but was still strong and holding its position between then 10-30 range.Read more on ambcrypto.com