The main actor of this sharp decline in the crypto money market for a few days is not the USA and the Federal Reserve, Luna (TERRA) it happened.
3rd largest stablecoin by total market capitalization Terra USD (UST) It is causing chaos in the entire cryptocurrency market.
Losing its equivalent to the US dollar twice in a short time and falling below 1 dollar, UST broke a record during the night hours.
UST Chaos Continues
UST price on the night from 9 May to 10 May for $0.67 This is the first time a stablecoin has fallen so low.
With the UST price losing its value sharply, of course, LUNA, which is the core of the whole ecosystem, also experienced an incredible decline.
At one point, UST’s total market cap was above LUNA. There was a great danger that the market value of UST, which is normally the network’s stablecoin and algorithmically balanced with LUNA, exceeds the other.
If LUNA’s market cap is lower than UST, the Terra project may have a problem of not having enough funds left to balance UST.
This, of course, means death for UST. UST restarts in the morning $0.90 level, the effects of the chaos that this will cause may appear in the coming days.
The LUNA price eats sale after sale, and the project was officially wiped out in one day. LUNA is currently ranked 14th and Trading at $35. At night, the LUNA dropped to $ 23.50.
While all these developments were taking place, Bitcoin went down to the level of $ 29,700 and saw the cost of $ 30,700 of the largest institutional investor Microstrategy. As of now, BTC is trading at $ 32,500.