TechBriefly
  • Tech
  • Business
  • Science
  • Geek
  • How to
  • About
    • About Tech Briefly
    • Terms and Conditions
    • Privacy Policy
    • Contact Us
    • Languages
      • 中文 (Chinese)
      • Dansk
      • Deutsch
      • Español
      • English
      • Français
      • Nederlands
      • Italiano
      • 日本语 (Japanese)
      • 한국인 (Korean)
      • Norsk
      • Polski
      • Português
      • Pусский (Russian)
      • Suomalainen
      • Svenska
  • FAQ
No Result
View All Result
 Hot Topics:
  • Instagram
  • TikTok
  • Android
  • iOS
  • Telegram
  • Social DM
  • Developer Mode
  • Dall-E Mini
  • Cuphead
  • Stranger Things
TechBriefly
No Result
View All Result
Home Crypto

Why did Terra Luna crash?

On Wednesday, the cryptocurrency Terra Luna plummeted more than 85%, according to data from CoinMarketCap, trading at $6.18 as of 12:30 p.m. IST.

by Aykut Göker
12/05/2022
in Crypto
Reading Time: 2 mins read
Why did Terra Luna crash?
Share on FacebookShare on Twitter

Everyone started to ask questions like why is cryptocurrency Terra Luna dumping or will Luna recover from this situation. Because on Wednesday, the UST (Terra USD), an algorithmic stablecoin, de-pegging incident drove down Terra Luna’s price by more than 80%.

Will cryptocurrency Terra Luna survive?

The Terra ecosystem’s success is premised on the use of UST as a stablecoin, therefore LUNA and UST are inextricably linked. LUNA invests in UST and loses money as the demand for UST rises. In the long term, as with other cryptocurrencies, the LUNA supply may become de-inflated as a result of upgrades.

If the market perceives UST to be volatile, LUNA’s value may fall. Following the Wormhole hack, UST lost its peg, causing the price of LUNA to plummet for a period of time.

Why did cryptocurrency Terra Luna crash?
Why did cryptocurrency Terra Luna crash?

The UST rate is going down

The UST Curve steadily decreased as people swapped UST for rival stablecoins when the value of UST began to plummet dramatically below its fiat peg. As a result of short selling, the price of LUNA fell, and Terra was compelled to issue additional LUNA to relieve the downward price pressure.

The UST rate is decreasing. The value of the LUNA dropped as a result, although the peg was not reinstated. UST’s trust was not restored by the Terran Treasury’s $1.5 billion Bitcoin auction, which resembled bank robbers who would rather receive pennies than exchange them for LUNAs.

If you wonder why is Bitcoin crashing and what is the Terra Luna crash’s effect on Tether, Bitcoin, and other cryptocurrencies, we explained everything in detail.

What happened to Luna Terra?

Co-founder of Coinstore, Jennifer Lu, about the whole mess. She explained what happened in detail: “The recent incident of UST losing its dollar peg has sent shockwaves across the crypto market as it has exposed the weakness of algorithm backed stable coins.”

“During the larger liquidations due to the macro-market volatility, UST fell down to as low as $0.60 yesterday which sparked a major sell-off in LUNA and resulted in one of the biggest price crashes in LUNA’s history. Luna Guard Foundation (LGF) scrambled to support UST by liquidating large Bitcoin wallets for sustaining UST’s value. As we speak, LUNA is down to $11 from its all-time high of $119.18 in April 2022, this phase of instability in LUNA will remain because the overall crypto market is expected to remain choppy in the coming weeks.”

Tags: cryptocurrenciesfeatured

Related Posts

Instagram NFT integration is enabled in more than 100 countries

Instagram NFT integration is enabled in more than 100 countries

Major League Soccer signs Bored Ape NFT as an first digital athlete

Major League Soccer signs Bored Ape NFT as an first digital athlete

Tornado Cash crypto mixer is sanctioned by the US Department of Treasury

Tornado Cash crypto mixer is sanctioned by the US Department of Treasury

What is Swiss Crypto Stamp and how to get it?

What is Swiss Crypto Stamp and how to get it?

Web Stories

Bonus program Meta for creator
Bonus program Meta for creator
How to become a famous author in Bitlife?
How to become a famous author in Bitlife?

POPULAR

What is the planet order in Snapchat Plus?

How to download all photos and videos from a Telegram chat?

How to fix stuck on connecting to CS:GO network?

RCM Loader for Nintendo Switch: What is it, how can you install?

How to rejoin a Telegram group that you have left?

What is Spotify color palette and how to get it?

Who is the most Googled person in 2022 (Top 10)?

How to see which posts you have liked on Facebook?

LATEST FROM THE FORUM

older than google

notepad++ paste without formatting

magic eye generator

iphone x in 2022

manga english translation

linux format sd card

laundry cost calculator

macbook uptime

pokemon ios emulator

please run channel auto scan without remote

msi afterburner on screen display not showing

itt slang

kmode exception not handled boot loop

mouse pad hard vs soft

paypal sugar daddy scam

is cash app flip a scam

iphone doing things on its own

multiple pbap properties

movie theater glasses

nest thermostat away mode

TechBriefly

© 2021 TechBriefly is a Linkmedya brand.

  • About Tech Briefly
  • Ask your question
  • Contact Us
  • Dall-E mini
  • Forum
  • Privacy Policy
  • Q&A base
  • TechBriefly
  • Terms and Conditions

Follow Us

No Result
View All Result
  • Tech
  • Business
  • Science
  • Geek
  • How to
  • About
    • About Tech Briefly
    • Terms and Conditions
    • Privacy Policy
    • Contact Us
    • Languages
      • 中文 (Chinese)
      • Dansk
      • Deutsch
      • Español
      • English
      • Français
      • Nederlands
      • Italiano
      • 日本语 (Japanese)
      • 한국인 (Korean)
      • Norsk
      • Polski
      • Português
      • Pусский (Russian)
      • Suomalainen
      • Svenska
  • FAQ

Bonus program Meta for creator How to become a famous author in Bitlife?