LUNA Hits New Lows As Kwon Pushes To Restore The UST Peg

The price of LUNA, the Terra blockchain’s native coin, hit fresh market lows on Thursday morning.

Terra Hits New Lows As Kwon Pushes To Restore The UST Peg

According to CoinCu data, the cryptocurrency fell below $0.30 for the first time on May 12, reaching a low of $0.21 as of press time. Binance presently facilitates more LUNA trade than any other exchange.

Terra‘s price dropped below $1 for the first time Tuesday, from more over $65 at the start of the week.

TerraUSD (UST), an algorithmic stablecoin unique to Terra that is supposed to mirror the price of the US dollar, has de-pegged dramatically in recent days, plunging crypto markets into chaos.

According to CoinCu, the price of UST is now about $0.60, but it has previously been as low as $0.02280.

Source: CoinCu
Source: CoinCu

The price of bitcoin has also dropped significantly this week. According to CoinCu data , the cryptocurrency is currently trading at around $26,660, having touched a local low of $26,607 on Coinbase.

The fact that LUNA is still falling while UST is making progress towards reclaiming its peg could be linked to Terraform Labs CEO Do Kwon’s efforts, who revealed a plan to try to restore the peg yesterday.

Kwon endorsed a community proposal to increase the amount of LUNA being minted per day by four times to help UST holders cash out, easing selling pressure.

The proposal acknowledged that burning billions of LUNA would dilute the currency significantly

Terra Hits New Lows As Kwon Pushes To Restore The UST Peg

“Nevertheless, there are no limit in LUNA supply, this market mechanism will actually work to bring stable UST and stable LUNA price (although likely at lower price point for LUNA),” the proposal stated.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Best Coins to Buy Now: Qubetics Sells 200M Tokens to Raise Over $2.7M as Cardano and Avalanche Look to Strengthen Bullish Trend

Best Coins to Buy Now: Qubetics presale raises $2.7M with 200M tokens sold as Cardano…

1 hour ago

Pepeto’s $600K Presale Highlights Vision for Supporting Memecoins Ahead of 2025

London, united kingdom, 22nd November 2024, Chainwire

3 hours ago

Robinhood Exec Dan Gallagher Declines SEC Leadership Role

Robinhood Exec Dan Gallagher declined consideration to lead the SEC, affirming his commitment to Robinhood…

3 hours ago

Best Cryptos to Buy in November 2024: What Sets Qubetics Apart from Fantom and Immutable X?

Discover why Qubetics, Fantom, and Immutable X are the best cryptos to buy in November…

4 hours ago

Franklin Templeton Digital Assets and Sui Now Join Hands to Strengthen DeFi Strategy

Sui Foundation partners with Franklin Templeton Digital Assets to enhance DeFi solutions on the blockchain.

4 hours ago

Get Insights on BlockDAG’s $136M Presale Success Revealed in Recent AMA—BTC Soars to $99K, Avalanche Trading Volume Surges

See how Bitcoin confronts $99K resistance, Avalanche enjoys a 23% rise, & BDAG achieves a…

5 hours ago

This website uses cookies.