The Terra (LUNA) cryptocurrency became known to the world on May 9, 2022, when its stable coin, UST, lost its peg for the second time in two days. Fear spread after that, and on May 10, the Terra environment was wiped out. In just 48 hours, the price of Terra dropped 99.99%. Now that things have settled down, it makes sense to wonder if LUNA is a good cryptocurrency to invest in and how high it could go. For more latest information on LUNA and other cryptocurrencies check more information.
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What does it mean when someone talks about “Terra” (LUNA)?
The main goal of the Terra blockchain is to support a stable money network based on algorithms. The TerraUSD was the most well-known, but it isn’t used anymore (UST).
On the Terra network, the LUNA token is used to run the network and keep the value of stable currencies stable. People who own LUNA can vote on the future of the Terra protocol. About 6.532 billion LUNA are in use right now.
In just seven days, the ecosystem on Terra (LUNA) broke down. Prices were about $85 on May 5, and they were almost nothing on May 12. The least amount you could pay for Terra was on May 5. As time went on and the market learned more about what had happened, there were a lot more trades in LUNA. It went up by more than 200% on the weekends.
After the UST de-anchoring, which caused the LUNA market to drop, LUNA investors did the same. On May 13, CoinGecko recorded a drop in trading volumes to $178.6 million, a number that hadn’t been seen since February 2021. CoinGecko said on May 13 that trading in the fall was worth $178.6 million.
Do Kwon, CEO, and co-founder of Terraform Labs, tried to fix things on the same day he announced a plan to bring Terra back from the dead. People who still have UST and LUNA tokens even though their value has dropped will get a reward as part of this plan.
Even though there are risks, Terra’s “crazy volatility” is still appealing to many short-term investors because LUNA’s price went up 600% for a short time on May 14.
As investors tried to make up for their losses and others tried to make money from Terra’s rise, the amount of money traded in LUNA went up by more than 200 percent, to $6 billion. Before the disaster, the LUNA ecosystem had been trading an average of more than $2 billion every day for the past two years.
The amount of trades in LUNA has again gone up. The source is CoinGecko.But from May 10 to May 13, when the price of LUNA fell, investors rushed to limit their losses, which were between $5 billion and $16 billion.
Because of this, there were more trades. Between May 10 and May 13, this happened, and it did happen between those dates. On May 11, when LUNA was at its highest, the most ever was traded, which was $16.15 billion.
As this article is being written, the price of LUNA has gone up to $0.00025, which means that it is back to trading at the same level as before. 68.26% of all LUNA trades happen on the cryptocurrency exchange Binance. KuCoin, which has 9.52 percent of the market, and FTX, which has 1.13 percent, are the next largest players.
People who use Crypto.com were worried about the exchange’s plan to stop LUNA transactions on its mobile app on Friday. Later, Kris Marszalek, the CEO of Crypto.com, said that an internal problem caused the system to show false prices, which helped many investors make 30–40 times what they put in.
Because of this, Crypto.com has stopped letting all of its user’s trade for the time being. Marszalek said, “All user accounts have been reactivated.” This was after he had spent a day looking into what seemed to be a problem with the system.