Since shedding approximately 99 percent of the overall value on Thursday, the value of LUNA increased by 1000 percent to $0.0005395 on Saturday, fueling optimistic emotion among LUNA traders.
Bullish Sentiments: Terra Soars 1,000%
After UST, Terra’s algorithmic stablecoin, went underneath the $1 peg, LUNA suffered its worst purchase yet this week, dropping to $0.22 on Wednesday. The de-peg was purportedly prompted by several large crypto investors fleeing the stablecoin in search of safer assets, fearful that Terra’s plan to back UST with Bitcoin might implode.
In the meantime, Bitcoin dropped below $26,000 on Thursday, causing other cryptocurrencies to follow suit, with the whole crypto market valuation plummeting by nearly 18%. The sharp dip in LUNA, on the other hand, appears to have piqued the curiosity of most traders. After reaching an all-time high of $119.18 on April 5th, LUNA, like other altcoins, went through a standard decline in the week before the massive sell-off.
When a stablecoin’s price fluctuates somewhat, skilled arbitragers will travel to DeFi’s largest liquidity pools on Curve and sell the cheaper stablecoin to whichever competitor has maintained its peg. Regardless of the fact that it is still well behind its all-time high, Saturday’s rally has given LUNA a breath of fresh air. After the Terra team decided to start block development on the Terra blockchain, Binance, the world’s largest crypto market by trading volume, reversed the decision and re-listed LUNA on Friday.
LUNA is currently trading at $0.0003911, up 292 percent in the last 24 hours, while UST is currently trading at $0.19. However, given the tremendous volatility of these currencies, investors must act with care.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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