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LUNC and TAMA show similar price movements amidst market volatility

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In the current state of the cryptocurrency market, investors have been anything but careless while investing in cryptocurrencies. While several cryptocurrency projects have been building heavily, two projects that have been standing out recently are LUNC and TAMA.

LUNC and TAMA are projects that are built entirely differently from each other. One is a prominent name in the Defi space, while the other is a community favourite in the Blockchain gaming sector. Despite this difference, both projects have been showing similarities in terms of price action. This goes to show that while projects may be getting launched every, the industry still has much room to grow.

As the sector continues to be in a state of infancy, it may be several years before various categories get valued differently. At the moment, the growth of projects is primarily dependent on the community and how investors perceive its growth. Major projects in the space too, have been sharing similar market caps and price action, due to this.

Naturally, there is an increase in demand for projects of various kinds, depending on popularity. However, the crash earlier this year ensured that investors do not park their funds solely based on the number of people who have been talking about a certain asset. But what about when projects of different categories, boast the same kind of community and use cases of equal value?

TAMA and LUNC have been in the headlines for a while now, due to the potential shown by them in the past months. However, to understand why this is something worth talking about, it is crucial to know what both projects exactly are

Tamadoge- Top-grossing P2E gaming platform

Created by a group of unknown professionals, Tamadoge is the latest entrant to the prominent DOGE ecosystem. It was launched recently this year and managed to gain a huge number of followers in a short span. Tamadoge is a blockchain-based gaming platform, that is set to host a huge variety of P2E games within its ecosystem.

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It features a Tamadoge NFT collection consisting of 21,100 unique pieces, which form an important part of the ecosystem. It is also stated to be the best earning option on the platform. These Tamadoge NFTs can be fed and nurtured before using them for battle against several opponents. This shall be one of the many P2E concepts that developers have been looking to completely optimize for the audience.

Tamadoge consists of a very innovative approach towards the blockchain gaming space, as it aims to be a one-stop destination for game enthusiasts of all types. Infact, creators of the platform claim that several other types like Move-to-Earn games too shall eventually be added to the platform.

Tamadoge is completely integrated with the metaverse. This metaverse specific to the Tamadoge community is called Tamaverse. It is also one of the chief offerings of the project. Every update regarding the Tamaverse is regularly updated on various social media platforms. The team also managed to gain the trust of the community as it is verified by Coinsniper. The contract code for Tamadoge too has been audited by Solid Proof.

Tamadoge had one of the most successful presales ever, where it managed to raise over $16 million within a short span. This was one of the highest amounts ever collected by top cryptocurrencies.

LUNC- The controversial Defi token

LUNC(previously LUNA) was one of the most popular tokens in the entire cryptocurrency industry at one point. Created in 2018 by Daniel Shin and Do Kwon, LUNC was a part of the Terra ecosystem.

Terra is a blockchain-based system that uses fiat-pegged stablecoins to make global payments price-stable. The project combines price stability and wide adoption of fiat currencies with the censorship resistance of Bitcoin (BTC) and offers fast and affordable settlements. Ideally, the project is supposed to create a stablecoin that can be relied on completely to be stable and secure.

LUNC

LUNC was created as the collateral for UST, which was Terra’s very own stablecoin. In simple terms, the model is designed to even out supply and demand for UST. When the price of UST is too high, users are incentivized to burn LUNC and create new UST, increasing the stablecoin’s supply while also decreasing the amount of LUNC in circulation. Thus LUNC becomes more scarce, which makes it more valuable, transferring that value into UST and vice versa. This action was carried out to maintain the ecosystem.

However, $2 billion worth of UST was suddenly withdrawn from a staking pool, which caused the UST token to plunge to $0.91. This was taken advantage of by the users as an arbitrage opportunity. As a result of many investors doing this, LUNC lost 99.99% of its value and was delisted from most of the exchanges.

In an attempt to revive the project, LUNA v2 was created. However, a huge chunk of the community stuck to LUNC as an investable asset.

Both tokens have been showing similar price movements

TAMA and LUNC as seen above, are completely different projects. They have different use cases and belong to two completely different categories. However, since it fell from the price range of $117 to a mere $0.00029 range, LUNC has been moving in sync with projects like Tamadoge.

One of the main reasons this may be happening could be because, like TAMA, LUNC is also being looked at as a memecoin. While it surely does consists of solid utility and fundamentals, there is a memecoin feel to it now, as investors flock to buy it even after it lost more than 99.99% of its value. This has caused the project to shoot up in price too.

 

It can be seen that while there has been more interest around TAMA due to major developments, LUNC too, has been spiking in value and engagement every day. Either way, similar price action can be seen while comparing the chart for both tokens. This goes to show that while projects may be differentiated by sectors, the community’s sentiments decide the movement of tokens. This may be irrespective of size or type of utility. However, that may not determine the original value of tokens.

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