The price of LUNA, the Terra blockchain’s native coin, hit fresh market lows on Thursday morning.
According to CoinCu data, the cryptocurrency fell below $0.30 for the first time on May 12, reaching a low of $0.21 as of press time. Binance presently facilitates more LUNA trade than any other exchange.
Terra‘s price dropped below $1 for the first time Tuesday, from more over $65 at the start of the week.
TerraUSD (UST), an algorithmic stablecoin unique to Terra that is supposed to mirror the price of the US dollar, has de-pegged dramatically in recent days, plunging crypto markets into chaos.
According to CoinCu, the price of UST is now about $0.60, but it has previously been as low as $0.02280.
The price of bitcoin has also dropped significantly this week. According to CoinCu data , the cryptocurrency is currently trading at around $26,660, having touched a local low of $26,607 on Coinbase.
The fact that LUNA is still falling while UST is making progress towards reclaiming its peg could be linked to Terraform Labs CEO Do Kwon’s efforts, who revealed a plan to try to restore the peg yesterday.
Kwon endorsed a community proposal to increase the amount of LUNA being minted per day by four times to help UST holders cash out, easing selling pressure.
The proposal acknowledged that burning billions of LUNA would dilute the currency significantly
“Nevertheless, there are no limit in LUNA supply, this market mechanism will actually work to bring stable UST and stable LUNA price (although likely at lower price point for LUNA),” the proposal stated.
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