When the market collapsed after news of China’s crypto ban hit the bottom, Bitcoin saw its price drop nearly 10%. Due to the BTC losses, a market-wide crash began, causing most of the top altcoins to lose their prices as well. However, some alts showed higher resistance to the crash, recorded fewer losses, and held up better than the others. Avalanche (AVAX) and Terra (LUNA), the eleventh and twelfth alts, were excellent examples of this.
Notably, AVAX was just 1.99% below its ATH price on September 23, while LUNA was just 21.02% below its ATH on September 11. While the two alts posted some minor losses, they appear largely untouched by the market crash. Why did these altcoins hold up better?
Good growth paths
Both AVAX and LUNA showed good growth rates last month. Avalanche’s TVL rose from $ 312 million on August 18 to $ 2.6 billion on September 14, while daily transactions increased from 43,243 on August 18 to 220,222 on September 12.
In addition, the distribution of Total Value Locked (TVL) in DeFi worldwide across various blockchains on the 17th. Terra accounted for 4.7% of the TVL, while AVAX accounted for 1.5%.
In addition, their metrics offered a healthy outlook overall, AVAX’s futures market also looked good as an OI for futures and posted eternal gains. Open Interest Change Over the past 24 hours, AVAX on futures is up 6.79% while OI on perpetuals is up 3.85%.
On the flip side, a recent increase in LUNA’s percentage of the total stablecoin supply held by whales could have acted with more than $ 5 million as a buffer for the coin during the recent dump. On September 19, there was an increase in the ratio of almost 35%.
Smooth ride, but what’s next?
The rise in the two altcoins could also be due to external factors like Terra’s Anchor Protocol, which hit $ 4 billion in TVL on September 22, six months after it was launched. On the flip side, AVAX’s price has also risen impressively since Avalanche completed a private sale of $ 230 million worth of AVAX tokens.
Notably, both alts have seen a significant uptrend in both market capitalization and market capitalization. However, at the time of writing, both AVAX and LUNA were down over 6% on the last day. It seems like the market crash affected the tokens, but only a little late. That said, the alts were still holding onto their higher support levels, which was a good sign.