Terra’s LUNA Drops to Almost $1 After 90% Weekly Plunge

·1 min read

Don't miss CoinDesk's Consensus 2022, the must-attend crypto & blockchain festival experience of the year in Austin, TX this June 9-12.

Terra's LUNA continued its third consecutive day of sliding as the token fell 96% in the past 24 hours to reach price levels previously seen in August 2021.

Anchor, the decentralized finance (DeFi) platform that provides yields on UST deposits, saw total value locked (TVL) fall by $11 billion in the past two days. The drop came after TVL peaked at $17 billion just a week ago.

DeFi platfrom Anchor saw TVL drop $11 billion. (DeFiLlama)
DeFi platfrom Anchor saw TVL drop $11 billion. (DeFiLlama)

LUNA fell to almost $1.30 at the time of writing on Wednesday as the depegging of the UST stablecoin with U.S. dollars contributed to waning sentiment among traders for LUNA.

Selling pressure on LUNA came as its parent foundation issued 46 million tokens in the past day to maintain UST’s 1:1 peg with the U.S. dollar, data shows.

The price action represented one of the biggest drops for a major cryptocurrency. Data shows LUNA's price has dropped 90% in the past week and 7% in the past hour alone. The token is now down 92% since lifetime highs of $119 in April 2022, just more than a month ago.

LUNA fell to as low as $7.62 during Asian hours. (TradingView)
LUNA fell to as low as $7.62 during Asian hours. (TradingView)

Social sentiment on social media sites for LUNA remained poor among traders. Meanwhile, suicide helplines and posts are trending on Terra’s Reddit forum, at time of writing.

UPDATE (May 11, 12:30 UTC): Updates headline and story to reflect the latest price of LUNA.