Both Solana and Terra went parabolic in 2022.
Solana and Terra could outperform the market again in 2022.
Solana’s security issues favour LUNA outperforming SOL this year.
Solana is a blockchain platform that enables developers to create and run decentralised applications, or Dapps for short. It has been designed with scalability in mind so it can process high numbers of transactions without slowing down user experience like other blockchains. It has lower transaction fees and can process more transactions than other blockchains, making it faster in many ways.
Terra is a public blockchain protocol that creates stablecoins by using open market arbitrage incentives and decentralised Oracle voting. The result? Stablecoin holders can spend, save or trade their coins instantly across all major platforms with no transaction fee! Users get staking rewards as well as governance power in return for holding onto these tokens.
Which one is a better buy?
Both Solana and Terra had an amazing year in 2021. Now that bulls are returning to the markets; both could perform well. They could easily retest or surpass their most recent highs.
However, comparatively, Terra could give higher gains than Solana. That’s because Solana has experienced downturns recently that have put a dent to its credibility. Even a grayscale report on crypto pointed to this as a risk factor for Solana.
This is a factor that could easily see it experience more volatility when compared to Terra. Terra on the other hand has a lot going for it at the moment. It has built a reputation as one of the best cryptocurrencies for the launch of algorithmic stable coins.
Currently, Terra is the second-largest DeFi platform in the market, second only to Ethereum. This is a feat it has achieved in less than one year. With the demand for algorithmic stable coins on the rise in the market, LUNA has what it takes to grow exponentially since it is the power behind the Terra ecosystem.