As of Saturday, the price of LUNA increased by more than 1000%, reaching $0.0005395, after losing over 99% of its total value on Thursday.
After Terra’s algorithmic stablecoin, UST, fell below the $1 peg, reaching $0.22 on Wednesday, LUNA witnessed its largest sell-off this week. Some big crypto investors dumping the stablecoin for “safer assets” due to the fear that Terra intends to peg UST using Bitcoin could rebound, leading to the de-peg of the stablecoin.
On Thursday, as other stablecoins including Tether (USDT) too fell as low as 95 cents on some exchanges, the situation worsened, leading to an increase in the ongoing “speculation driven fear.”
On Thursday, the leading cryptocurrency, Bitcoin too fell close to $26,000 pulling other cryptocurrencies along with it, as the whole crypto market cap decreased by over 18%.
But what grabbed the attention of most traders was LUNA’s sudden drop. LUNA experienced a classic freefall along with other cryptocurrencies after reaching its ATH of $119.18 on April 5th, before embarking on a massive sell-off this week.
After the Terra team made the announcement of the Terra blockchain halt with the intention to reconstitute it, LUNA went through another blow. This led to Binance halting the trading of LUNA pairs.
Saturday’s increase helped in the revival of LUNA though it’s still significantly lower than its ATH. Binance, the large crypto exchange by traded volume, had a slight change in its plan on Friday and re-listed LUNA after the Terra team agreed to restart block production on the Terra blockchain.
On one hand, where some investors found the opportunity in making some money off LUNA’s sudden rise, others appeared to be excited by Terraform Lab’s plan to revive the network. The trading volume of LUNA has increased by more than 1000% in the last 24 hours with traders now predicting that LUNA will have a SHIB-like rally.
Besides, Terraform Labs co-founder, Do Kwon, clearing all rumors said that Terra did not orchestrate the UST dump.
In a tweet, Kwon denied that neither he nor his institution has benefitted from this incident, saying he sold no LUNA or UST during the crisis.
Kwon also said that he still thinks that decentralized economies deserve decentralized money. He then goes on to say that UST, as it is now, will not be that money. The Terra team is right now working on a “Terra ecosystem revival plan” that has left many Terra proponents appeased, as can be witnessed in today’s rise.
At the time of writing, LUNA was trading at $0.000224, down 43.36% in the last 24 hours.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.