Unprecedented declines are expected in the bitcoin market during the next few days and weeks. As of the time of this writing, the price of one Bitcoin (BTC) was $28,031.48. This is far below the benchmark price of $30,000. Bitcoin’s pricing on Indian exchanges was Rs 23.8 lakh. On global marketplaces, Ethereum (ETH) is trading for $1,937.85 and Rs 1.65 lakh on Indian exchanges, respectively. On May 11, Coin Market Cap data shows that Terra Luna (LUNA) lost more than 85% of its value, making it the worst-performing cryptocurrency at the time. The ‘de-pegging’ of Terra USD (UST) stable coin is the explanation behind this.
When LUNA drops in price, what’s the reason behind it?
Terra Luna’s price fell by how much after the LUNA crash?
According to CoinDesk, LUNA’s price was $0.37, or Rs 32.34, on Indian exchanges, at the time of this writing. On May 10th, the cryptocurrency fell by 55%, then by a further 86% on Wednesday. Investors in LUNA have lost nearly all of their money in the last few days.
Since its all-time high of $118 in April, LUNA’s price has fallen 97 percent.
Terra Luna’s LUNA crash: What’s wrong with Terra Luna?
LUNA and UST are now intertwined as a stable coin in the Terra ecosystem. An underlying asset, such as gold or the US dollar, is what ties a stable coin together.
The value of the UST has lately been ‘de-pegged’ from $1 to $0.45. This represents a 55% decrease. UST’s steep decline has had a ripple effect on LUNA, as the two indices are intertwined.
Terra’s market worth is now below $1 billion, according to CoinDesk ($994.17 million at the time of this writing). An all-time high of about $25 billion in market capitalization stands in stark contrast to this.
For the time being, investors’ only option is to sit tight and wait for the market to correct itself.