Luna Facing Its Worst Ever Phase

The crypto market is currently facing one of its worst times. As the native token of the Terra blockchain, LUNA lost around 99% of its value within a week. The straight fall has shaken up the entire crypto market which is down to $1.3trillion.

But this challenge will not destroy the industry rather it may open an opportunity when the volatility will suppress.

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The blockchain Terra has been designed to facilitate the stablecoins and is the cryptocurrencies pegged to the real-currencies saying U.S Dollar or Euro.

It comprises two assets one is the TERRA, the portfolio of stablecoins, and the LUNA, the token for trading designed to stop the volatility of the stablecoins.

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In the upbringing situation of the stablecoins, Terra Luna has been an excellent way for the investors to bet and it grew the market cap to around $28 billion making it the eighth-largest cryptocurrency by the first day of this month.

But after a lot of huge withdrawals, on May 9th, it lost the peg to the dollar. The problem was not solved and without supporting TerraUSD, LUNA became volatile slipping the market capital down to around 99%.

Anupama Das

An active reader and follower of news. A budding journalist tries to spread authentic news to people.

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