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Dogecoin (DOGE) has flipped Terra (LUNA) in market capitalization to become ranked the 10th biggest crypto. The flip is coming on the back of the ensuing drama in the Terra ecosystem that has seen the price of LUNA tank in the last few days. LUNA is down 28.16% in the last week and has fallen more than 50% below its all-time high price reached in December.
Dogecoin (DOGE) flips Terra (LUNA) in market cap amidst the ensuing Terra drama
The competition for dominance between DOGE and LUNA continues to intensify. Per data from CryptoRank, Dogecoin is once again topping Terra (LUNA) in market capitalization. The market cap of DOGE stands at around $18.22 billion, while that of LUNA is currently $18.20 billion.
Market participants are however pointing out that the flip has not been due to a surge in DOGE, but to the panic selloff happening in the LUNA market. The price of DOGE has seen a modest surge as it is up 1.04% in the last seven days. In contrast, LUNA has nosedived 28.16% in the same time frame. The drawdown has been associated with the selloff happening in the Frog Nation collection of DeFi 2.0 projects that consist of Abracadabra.money, Popsicle.finance, Wonderland.money, and the most recent member, Sushi.com as reported by crypto social signals tracker, Santiment.
The association comes from Terra’s popular multi-chain algorithmic stablecoin, Terra USD (UST). The Terra blockchain uses stablecoins to run its payments system and uses the LUNA token to stabilize the price of the protocol’s algorithmically-backed TerraUSD stablecoin, UST. Since it was discovered that Michael Patryn, one of the co-founders of the Wonderland (TIME) protocol, has been linked with fraud in the past, the prices of all the Frog Nation tokens have been falling and have been pulling LUNA and UST along.
Will DOGE hold the upper hand for much longer?
At the moment, very little separates DOGE from LUNA. The memecoin however holds a lot of promise in 2022. Several developments are planned for the Dogecoin blockchain even as DOGE has been getting more adoption from institutional investors. The memecoin started getting accepted for Tesla merchandise this year. Elon Musk also recently urged the McDonald’s fast-food restaurant chain to accept DOGE.
With all the adoption DOGE has been seeing, it may be possible for the memecoin to hold its position above LUNA. Regardless, LUNA may not stay down for long and may surpass DOGE again. According to the founder of Terra, Do Kwon, the supply of UST could increase significantly over the next 12 months. Kwon, while highlighting several factors that could increase UST to surpass its previous ATH, added that this could have an overall positive impact on the price of LUNA.