In just a few hours, the price of Terra project LUNA fell dramatically below 1 USD.
Thus, after just over a month, peaked at nearly 120 USD, now VND LUNA has lost more than 99% of its value.
Specifically, according to Coin Market Cap data, the price of LUNA coin has plummeted, from over 30 USD at dawn on May 11 to about 10 USD at midday on the same day. By about 20 o’clock, the value of this coin was only about 0.9 USD.
Recorded at 20:15 on May 11, the price of LUNA was only $0.9491 with a 24-hour trading volume of $6,916,692,767, down 86.71% in the past 24 hours.
The LUNA coin lost most of its value on 11.5
Before that, there was a time when the LUNA coin, token of the Terra project, entered the top 10 largest cryptocurrencies world. Currently, this digital currency is no longer in the top 80 with a market capitalization of only 618,298,295 USD.
Depending on each other, the ‘duo’ UST and LUNA struggle together
In principle, the supply/demand relationship between LUNA and stablecoins UST is the basic rule to keep the price of UST stable at 1 USD. Therefore, every small change in one of the two affects the other.
It is known that the source of Terra’s push to this abyss is that the ecosystem’s algorithmic stablecoin UST has lost the value of 1 USD, which has lasted from May 7 to now, which has not been completely resolved.
After being “urgently inflated” with hundreds of millions of USD to return to a stable level of 0.9 USD, it seemed that all the storms had passed, the LUNA coin plunged below 15 USD, which led to a further decline in the price of UST. once again.
Reassurance in helplessness
Posted on Twitter, Do Kwon, co-founder of the Terra project, and his allies constantly reassure the community, promising to continue pumping money to save Terra and soon there will be an effective solution. However, these reassurances seemed to be meaningless, LUNA continued to sell off and led to a catastrophic drop in price.
At the same time as the sudden collapse of LUNA, the crypto market is still continuing to be chaotic as other coins also plummeted, even Bitcoin (BTC) once dropped to the $30,000 mark. According to Alternative, the sentiment index of the entire cryptocurrency market is at a very low level: only 12 points – in the extreme fear zone.