Terra tops the charts in being the main focus of market players in the crypto market as the cryptocurrency LUNA has made a free plunge up to below $ 1, in other words a weekly decline of almost 99%. At the same time Bitcoin and altcoin also suffer the same fate when the occurrence of liquidity exceeds $ 700 million on a daily scale.
At this point the capital of the cryptocurrency market has lost over $ 400 billion in less than a week, falling to a 10 -month low of $ 1.350 trillion. Market developments have worsened since then when BTC failed to maintain the $ 30,000 level this week.
The episode was exacerbated when Bitcoin once again made a plunge below the $ 30,000 level for the second time by hitting the most recent low since July 2021 of $ 29,000 (on Bitstamp).
Also following the fall were other altcoins like Ethereum down 10% to below $ 2,200, BNB below $ 300 (-15%), while Solana, Avalanche, Polkadot, Dogecoin and many more have lost over 20% on a daily scale.
Yet among all, the most suffering is what befell Terra’s original cryptocurrency - LUNA. The story happened a week or so ago, which led to UST’s peg at a split $ 1 price.
In short the selling pressure is getting bigger and pushing a huge price drop for LUNA, which fell below $ 1 earlier today. In the past six days, LUNA has traded at $ 90, with it having lost about 99% of its value in less than a week.
Luna Foundation Group (LFG) a few days ago has promised to bail out LUNA and Terra stablecoin (UST) by using up a large amount of reserves. Waima so market players are increasingly worried when looking at the online dashboard (dashboard) LFG which shows that BTC reserves have been used and at the same time the balance of US dollar reserves are also not very good. Will the LUNA bailout force LFG to mortgage AVAX reserves? A handful see this as a bad sign for AVAX if it is mortgaged.
Previously, a similar situation happened to the defi project owned by Iron Finance so that Mark Cuban 'sat down' for a while when there was a bank run when TITAN and the stablecoin project, IRON, were destroyed.
It should be noted that UST is an algorithmic stablecoin supported by LFG. It differs from stablecoin like USDT or BUSD which claim to be pegged 1: 1. No wonder some state that algorithms can’t necessarily keep the market working. This once happened to the IRON crypto last year when it was de-pegged or its reserve pegs were loosened from the US dollar, then eventually followed by a massive sale by investors. However, Terra CEO Do Kwon denies this happened to LUNA.
Waima said some market players are still optimistic, including CNBC Crypto Trader, Ran Neuner who stated ““ Every attack makes LUNA more competitive. It happened to bitcoin many times in the early days. It's part of the process! ” Luna's price has so far risen above the $ 3 trading level.
