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The price of Terra (LUNA) has dropped by more than 30% in one day.
Terra (LUNA) Getting Annihilated as UST Loses Its Peg
The price of Terra (LUNA) has dropped by more than 30% in one day, according to data provided by CoinGecko.
This comes after the UST stablecoin lost its peg, plunging to an intraday low of $0.932008. After attempting to recover, it keeps trading below the $0.94 level at press time.   Â
Terra’s most popular stablecoin reached its current all-time low of $0.85 on May 19, 2021.
UST is an algorithmic stablecoin, which means that it maintains its stability with the help of algorithms programming instead of centralized entities like Tether or Circle. Â
The Luna Foundation Guard (LFG), a non-profit created by Terraform Labs, has emptied a Bitcoin wallet containing $1.4 billion in order to shore up the embattled stablecoin. It scrambled to issue loans in both Bitcoin and UST to over-the-counter trading firms. Last week, the LFG became Bitcoin's second-largest corporate holder (behind only business intelligence firm MicroStrategy).  Â
In addition, the Terra network has already started experiencing some broadcast delays per network congestion.
UST has now surpassed its sister token by market capitalization. The two are valued at $17 billion and $15.9 billion, respectively.
As reported by U.Today, the stablecoin also briefly lost its peg on Sunday, but the drop was less dramatic.
Source: https://u.today/terra-luna-getting-annihilated-as-ust-loses-its-peg
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