Steady As She Goes

Luna is a Crypto Currency that is seen to be more resistant to market downturns, this idea could have a relationship to the tokenomics of Luna the protocol documents outline that "The more Terra is used, the more Luna is worth." https://docs.terra.money/docs/learn/protocol.html During market downturns, investors will often choose to invest in stable coins to protect their investments. With Coinbureau a popular youtube channel for learning about crypto describing the benefits of Terra use during downturns in Luna's tokenomics, it isn't surprising to see investors following suit. https://www.youtube.com/watch?v=uLmVtec0px4 Let's see how the data stacks up in comparison to BNB a coin that doesn't benefit from the same tokenomics.

BNB initially sees a much smaller dip from the 21st to the 22nd with the coin gaining and maintaining resistance in comparison to Luna which had a dip after initial resistance on the 23rd of Jan. On January the 31st BNB is sitting at 5.7% lower than its price on the 21st of Jan, whereas Luna sits at 36% lower than its performance on the 21st of Jan. Once again highlighting BNB's stronger performance early on in the data analysed. BNB maintains stronger performance until February the 23rd, following a dip on the 16th of February.

Importantly this is a limited data set, from the data I have looked at competing coin(BNB) may perform stronger than LUNA immediately after a market downturn but over time LUNA may be a better option. In order to draw a stronger conclusion, I would need to analyse a number of market downturns over a longer period of time and a number of cryptocurrencies in comparison to Luna. This is something that is outside of the scope of my PC & flipside due to the compute power needed to analyse such large amounts of data.

Luna's initial dip is much larger than BNB's initial dip on the 21st a dip of almost 16.5% in value going against the hypothesis that Luna is more resistant to a downturn.

Stability to a market downturn is a Cryptocurrency that retains most of its value despite dips in in the broader market. I'm yet to see a cryptocurrency that I could confidently say fits that definition apart from stablecoins.

However, at the end of the time period we see much stronger price performance compared to BNB, this could imply that over a period of weeks the price of Luna can outperform competing coins. Its price on March 2nd sits at 24% higher than its price on the 21st of Jan with BNB's price sitting at 1.5% higher.