LUNA Causes a Catastrophe in the Terra Ecosystem

LUNA Causes a Catastrophe in the Terra Ecosystem
  • The price of LUNA dropped 98% in the last 24h.
  • Terra’s recovery strategy proposals are under high criticism. 

The downtrend of Terra (LUNA), the native coin of the Terra ecosystem, has gained rapid momentum, driving it to drop unimaginably to its all-time low. At the time of writing, according to CMC, the price of LUNA dropped to its all-time low of $0.037. 

Terra’s governance coin traded as one of the top 10 cryptocurrencies in terms of  capitalization in April. With a market cap of $41 billion on April 5, it even managed to surpass other contenders such as ADA ($39.5 billion) and AVAX ($24.4 billion) in the ranks. In the last 24 hours, LUNA decreased by 90% to approximately $193 million in terms of its market capitalization. On Tuesday, the worth of LUNA  in the market, as per the data from CMC, was $6.6 billion. A famous crypto influencer commented on this in the following tweet.

Speeding Up The Recovery

Terraform Labs aims to prevent the dilution of LUNA and restore the peg of its stablecoin TerraUSD (UST). The recent proposal called “Agora proposal” is open for community voting on Thursday. As per this, the network plans to burn nearly 1.01 billion UST locked in the community pool. The team believes that cutting down the overhanging supply of UST would cease the dilution of LUNA. But crypto experts and enthusiasts have minimal hope for these measures as the coins continue to slide down in the market. At the time of writing, the price of UST is $0.5928, trading up 43%.

The top contenders on the chart, Bitcoin and Ethereum, plunged to hit their lowest price in the last 24 hours. At the time of writing, Bitcoin recorded its all-time low at $26,350 and the all-time low of Ethereum was $1,748. The ongoing price actions continue to portray the wild bloodbaths occurring in the crypto world.

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