Cryptocurrency

Terra (LUNA) Vs Polygon (MATIC): Comparative analysis

Investing in Crypto Assets

Snapshot:

  • What is Terra(LUNA)?
  • What is Polgyon(MATIC)?
  • Polygon Matic & Terra Luna Comparative Analysis
  • LUNA vs MATIC Price Trends
  • Should you buy MATIC or LUNA coin?
  • How to invest in LUNA & MATIC coin?

What is Terra (LUNA)?

Terra is a blockchain protocol using fiat-pegged stablecoins to empower stable global payment systems. Terra is a unique combination of price stability and wide adoption of fiat currencies offering affordable and fast settlements. 

The development of the Terra blockchain began in 2018 and its official mainnent got launched in 2019. As of today (1 March 2022, 12:53 PM IST ), the price of Terra (LUNA) is $89.05. Its TVL value recently hit an ATH of $20billion surpassing the Binance smart chain. 

The native token of the Terra network is the LUNA coin. It is used to stabilize the protocol’s stablecoin prices. The holders of the LUNA coin are also eligible to submit and vote on the governance proposals thus, it also acts as the governance token for the network. The stablecoins pegged to the Terra network are South Korean Won, US Dollar, Mongolian tugrik, and the IMF’s special drawing rights basket of currencies. The developers intend to launch additional options too.

What is Polygon (MATIC) crypto? 

Polygon, which was earlier known as the Matic network, is an easy-to-use and the first-ever well-structured platform to scale Ethereum as well as develop infrastructure. The core component of this crypto network is the Polygon SDK which is a flexible and modular framework supporting the development of various types of applications. 

Polygon provides solutions for most of the issues faced by Ethereum today such as poor user experience, high gas fees as well as low transaction throughput. The primary aim of the Polygon (MATIC) network is to create an internet of Ethereum based blockchains. The development team behind the successful Indian crypto project wishes to achieve this with the help of an easy-to-use framework that will in turn allow the developers to launch their customized Ethereum-compatible blockchains in a single click. 

The Polygon side chains have been so well structured that they can support decentralized finance (DeFi) protocols that are available on the Ethereum network. The Polygon network also underwent the London Hard Fork and Ethereum Improvement Proposal (EIP) 1559 upgrade in January 2022. 

The current (1 March 2022 12:53 PM IST) price of the MATIC coin is $1.60. It is the 17 largest crypto by market capitalization according to CoinMarketCap. The current circulating supply of the MATIC coin is 7.56 billion with a total market capitalization of $12,015,973,970 at the time of writing. 

Key Takeaways 

The unique features of the Terra LUNA coin are: 

  • Terra is a fiat pegged stablecoin powering blockchain system. 
  • It combines the borderless benefits of cryptocurrencies with the price stability of fiat currencies.
  • It has established numerous partnerships with payments platforms, especially in the Asia-Pacific region. 

The unique features of the MATIC coin are:

  • Polygon (MATIC) is a Layer 2 scaling solution for Ethereum. 
  • The primary aim is to reduce the complexity revolving around scalability as well as instantaneous transactions.
  • The Plasma framework and the proof-of-stake technology lets each sidechain on Polygon to achieve up to 65,536 transactions for every block. 

Polygon MATIC vs Terra LUNA Comparative Analysis

Comparison Basis  Terra (LUNA) Polygon (MATIC)
Launch date  2019 October 2017
Founders Daniel Shin and Do Kwon  Jaynti Kanani, Sandeep Nailwal and Anurag Arjun
Blockchain protocol  Terra network  Polygon Network
Token type  Governance  Native
Use case It’s a fiat pegged stable coin and acts as a governance token for the LUNA coin holders.  Polygon is a Layer 2 scaling solution seeking to stimulate a mass adoption of crypto assets by resolving issues around scalability and fast transactions faced by Ethereum. 
Market Cap* $33,481,648,635 $12,041,539,728
Circulation Supply** 375,996,521.27 LUNA 7.56B MATIC
Consensus method Delegated Proof-of-stake (DPoS) Plasma Framework + Proof-of-stake

Source: Coin market cap

MATIC vs LUNA: Price Trends(Monthly)

LUNA vs MATIC

Source: Trading View

Additional Read: Polygon (MATIC) Price Prediction & Terra (LUNA) Price Prediction

Should you buy a MATIC coin vs LUNA coin

LUNA crypto is the governance token for the Terra blockchain serving as the backing for its UST stablecoin. Terra USD (UST) is not backed by fiat currency like its other counterparts USDC or USDT. The supply of LUNA acts as the backing for UST. The past few months have been really harsh for the entire crypto space. However, while the crypto market remains highly volatile in these uncertain times, Terra (LUNA) has swiftly moved up the chart by more than 70% in the past seven days. The price rally of LUNA has been such that it has outpaced Solana and Cardano in market capitalization. All this signifies LUNA’s resolve to prove itself apart from the other fiat-pegged stable coins. 

MATIC on the other hand is a layer 2 scaling solution for Ethereum. Scalability is one of the major issues with most of the top cryptocurrencies. Therefore, any working solution that helps in reducing the load of the network as well as increases the speed of the transactions by reducing the cost is highly demanded and welcomed by the crypto community. This is exactly what MATIC coin provides. According to experts from GovCapital, the MATIC price could rise to $3.86 in a year and even hit $10.5 by 2027. According to wallet Investor MATIC is believed to be an awesome long-term investment. 

Several factors were responsible for this amazing performance of the MATIC coin. Some of them being the announcement of Decentralized autonomous organization (DAO) way back in 2021, collaboration with Ernst & Young (EY) and the recent being deployment of Uniswap on  Polygon, the release of Plonky2, a major milestone for zero-knowledge cryptography, and other such scaling operations undertaken by the network. All these factors have indeed helped in the growth of the Polygon network. 

However, as an investor one must do their due diligence. We always recommend our readers to do their own research before investing their hard-earned money into any crypto assets. One must look at the use-cases, fundamentals, development teams, as well as the popularity of a crypto before investing in them. 

Additional Read: Terra Luna Technical Analysis

How to invest in both LUNA and MATIC coin

Investing in crypto is super simple, safe, and secured with CoinDCX. It doesn’t matter whether you want to invest in the LUNA or the MATIC coin, we have got you covered.  Wondering where to buy a LUNA coin? CoinDCX is India’s safest and simplest crypto investment app

Here are the 3 simple steps to buy your first crypto with CoinDCX app. 

  1. Sign up on CoinDCX 
  2. Link your bank details 
  3. Buy Terra (LUNA) or Polygon (MATIC)

Additional Read:

Terra  vs Avalanche

Polygon vs Tezos

Cardano vs Polygon

Terra LUNA vs Polygon

Terra LUNA vs LUNC


Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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