Terra Suffers Lifetime Crash Following UST Troubles
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Previously in the top-ten crypto rankings, LUNA now sits at the number 38 spot, dropping by 30 places, according to CoinMarketCap.
Meanwhile, Terra’s Stablecoin UST currently trades at $0.51 after slumping to the $0.20 low this morning. The algorithmic Stablecoin’s predicament has only worsened over the past 24 hours despite efforts by the Luna Foundation Guard (LFG) to return it to the $1 peg.
Terra founder Do Kwon recently tweeted that he was “close to announcing a recovery plan for UST” and apologized for taking too long to comment on the nasty occurrence. However, the persistent weakness in both assets shows that investors have lost confidence.
Other cryptocurrencies have suffered debilitating setbacks, likely due to the Terra predicament on Wednesday. Bitcoin neared the $30K support, as Ethereum fell to $2,270. Most other tokens also recorded double-digit declines this morning but have since rebounded mildly.
Without a doubt, the Terra collapse will remain the biggest obstacle to scale for the market to post a meaningful recovery in the near term.
Key Terra Levels to Watch — May 11
LUNA has found itself in a pickle as it witnesses its worst week in its history. As mentioned earlier, the cryptocurrency has shaved off almost 99% of its value in the last seven days as investors continue to dump and pile up short positions.
At this rate, LUNA could drop to the $2 mark before the end of the day. Recovering from such a loss will not be a walk in the park. As it stands, we might never see the $100 price tag for LUNA in 2022. It is safe to say that the technicals do not matter for the cryptocurrency as spectators adopt a watch-and-see stance.
Total Market Capitalization: $1.43 trillion
Terra Market Capitalization: $2 billion
Terra Dominance: 0.14%
Market Rank: #38
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