For compiled code, Pallene's performance can be comparable to LuaJIT[1]. Pallene might be better in code with unpredictable branches, which don't fit in a single trace. LuaJIT has the edge in purely-interpreted code, and can inline indirect or cross-module function calls. LuaJIT is also more featureful, and has a better FFI story at the moment.
[1] https://www.inf.puc-rio.br/~hgualandi/papers/Gualandi-2020-S...
LuaJIT is really good software, it is hard to beat it as its own game. Pallene tries to get its edge elsewhere: it tracks Lua 5.4, whereas LuaJIT diverged around 5.1 and will stay that way forever. Pallene's implementation is arguably more portable, because it compiles down to C and doesn't need hand-crafted assembly.