Trading Volume For Terra (LUNA) Increased By 200% As The Market Responds To The Death Spiral.

Despite the dangers, Terra’s ‘insane volatility’ appeals to many short-term investors, primarily since LUNA surged 600% in value on May 14.

The Terra (LUNA) ecosystem spiraled down in just seven days, with prices plummeting from $85 on May 5 to virtually $0 on May 12. As the market began to understand what had happened, the trading volume of LUNA increased by almost 200% over the weekend.

As a result of the UST de-pegging, which destroyed the LUNA market, LUNA investors followed suit, with CoinGecko reporting a drop in trade volumes to $178.6 million on May 13 – the lowest level since February 2021.

On the same day that he offered a revival plan for Terra’s recovery, Terraform Labs CEO and co-founder Do Kwon sought damage control by rewarding UST and LUNA holders for holding the tokens during the crash.

Despite the risk, Terra’s ‘insane volatility’ appeals to many short-term investors, owing to the fact that LUNA surged 600% in value on May 14.

The trading volume of LUNA increased by nearly 200% to $6 billion as investors try to recoup their losses and others try to profit from Terra’s rebound. Over the previous two years, the LUNA ecosystem consistently registered over $2 billion in trade volumes until the crisis.

Due to the aforementioned circumstances, LUNA has regained its trading volume and is currently trading at $0.00025. According to Coincu data, Binance accounts for 68.26% of LUNA’s trading volume, with KuCoin accounting for 9.52% and FTX accounting for 1.13%.

Users on Crypto.com expressed worry on Friday that LUNA trades were being reversed on the exchange’s mobile app.

Kris Marszalek, the CEO of Crypto.com, later acknowledged that the system displayed false prices due to an internal issue, resulting in many investors making 30-40x profits.

As a result, Crypto.com temporarily disabled all trading for all users. “All user accounts have been re-enabled,” Marszalek said after a day of reviewing the alleged system malfunction.

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.

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