Terra’s LUNA has had a terrible few weeks as its price plummeted after a solid start to the year. Last week, the price of $Luna plummeted to the level of a penny stock, with its companion, TerraUSD, also linked to the blockchain, falling. LUNA reached an all-time high of $119 in April before plummeting 99 percent of its value in the following weeks.
Over $30 billion in crypto value was lost as a result of LUNA’s fall, shocking the crypto sector and catching the attention of outsiders. The decline of Terra’s UST has also put into doubt stablecoins, as it was the cornerstone of the Terra ecosystem in April, with a market valuation of more than $18 billion.
Although the price of Luna is still a small shadow of what it was only a month ago, any upward trend in its price is critical since many believers foresee redemption. However, reactions to LUNA’s recent price action have been mixed.
Some market analysts and participants say that LUNA’s fall was unlike anything else seen in the market and that any further action should be based on a comprehensive examination supported by facts and numbers.
Despite the fact that the cryptocurrency industry is very volatile, several analysts thought the coin had strong support as well as a huge market valuation to make it a top performer for the year. Its abrupt demise has now called into doubt even the most minor development around it.
Despite the fact that the current surge in LUNA’s price has not been attributable to any significant developments in its camp, investors hurting from the unexpected demise of their assets are hopeful that it is the start of something wonderful. Some in the crypto industry are rooting for the currency to return from its slide, since a coin large enough to hold the fourth slot on the crypto ladder is unlikely to stay down for long.
Terra’s team recently came under fire for changing the plan mid-vote. Although Terra’s chairman, Do Kwon, has been creating up plans for investors to recoup part of their capital, he also changed one, and more significantly, he did so when proposal 1623 was being voted on.