The recovery plan for Terraform Labs’ stablecoin TerraUSD (UST) and its native token Terra (LUNA) embarked on a bumpy route after the LUNA 2.0 cryptocurrency suffered a substantial market fall hours after its launch.
TerraForm Labs successfully delivered new LUNA coins to market participants holding LUNA Classic (LUNAC) and TerraUSD (UST). According to data from cryptocurrency exchange Bybit, LUNA began trading at $0.5 and quickly rose to a high of $30 before dropping by more than 88% to $3.5.
Related Reading | Cryptocurrency Spams Grow By Over 4000% In The Last Few Years
LUNA 2.0 Price Surged 5,900%
On Saturday, May 28, the LUNA price surged 5,900% to a new all-time high of $30. Unfortunately, this spectacular rise was short-lived. The price soon reversed and dropped 88%, resulting in a swing low of $3.50.
LUNA 2.0’s price increased quickly after it hit $3.5, reaching $10.22 before staying at $6 for the last two days. As this coiling up continues, there is a good chance that Terra bulls may come together and cause a big rally.
People are bullish on LUNA because assets usually go back to their average after a big move. LUNA’s price went down 88% recently. But it will probably go back up just as quickly because the decline was so sharp. Although, some members of the Terra community speculated that LUNA 2.0 would cost between $30 and $50 when it was released. Therefore, investors are outraged by the current price movement. Due to Terra’s LUNA and UST death spiral, they continue to suffer losses.
Due to Saturday’s airdrop, the LUNA 2.0 price is consolidating below the middle of the newly formed trading range. As a result, investors should be patient before opening new trading positions and wait for a directional bias to develop.
Do Kwon Blamed For Market Crash
Do Kwon has been the center of attention since the fall, with some in the crypto community blaming him for the market crash. He faces accusations that he engaged in fraud leading up to Mirror Protocol, too!
LUNA continued to lose money after the collapse, with its market capitalization slipping below $1 billion. But surprisingly, the crash sparked interest in LUNA, with Google search popularity ratings skyrocketing.
Related Reading | Undervalued Metaverse Project Mars4 Is Preparing for New Releases
The collapsed token became popular because some people were very optimistic and put in more money. This made the token’s price go up quickly. But according to market analysts, the interest in the token was due to the hope that it would be like other meme coins, like Dogecoin.
According to Do Kwon’s original plan for a new blockchain, the aftermath of the UST peg failure was an opportunity to come up afresh from the ashes.
Featured image from Flickr, and the price chart from Tradingview