Amid the bloodbath in the crypto market, Terra blockchain’s LUNA cryptocurrency nosedived the most, wiping out over 82.6% of its value in just 24 hours. Meanwhile, the network’s dollar-pegged stablecoin TerraUSD (UST) continues trading at just $0.35, far below its intended $1.00 value peg.
<h2><strong>LUNA Shades 43% in Past 1 Hour Alone</strong></h2>
Terra's LUNA continued its third consecutive day of slide as it falls down to 82.6% in the past 24 hours to reach price levels previously seen in August 2021.

The price action represented one of the biggest drops for a major cryptocurrency. According to data from <a href="https://www.coingecko.com/en/coins/terra-luna" target="_blank" rel="noopener">CoinGecko</a>, LUNA prices have dropped 93.5% in the past week and 43.9% in the past hour alone. The tokens are now down 94.7% since lifetime highs of $119 in April 2022, just more than a month ago.

LUNA is now the 34th largest cryptocurrency by market cap, despite being within the top 10 just days ago.
<h2><strong>Terra's UST Too in Free Fall</strong></h2>
Terra's stablecoin, TerraUSD (UST), lost its dollar peg for the second time in three days, falling to as low as $0.35, losing 60.5% in the past 24 hours.

The fall was so steep that the market cap of Terra dropped below the market cap of its stable coin UST, according to the data from CoinGecko. Even it dropped down to the 18th spot among the largest crypto tokens from the eighth spot.

Since the UST is pegged against the US Dollar, Terra maintains a collateral reserve in the form of its LUNA tokens. When the UST exceeds $1, users are incentivised by the Terra protocol to burn LUNA tokens and mint UST. The protocol reverses its incentives when the UST drops lower than $1 to help maintain its stability.

Terra’s LUNA Drops Down Over 80% in Past 24 Hours

Amid the bloodbath in the crypto market, Terra blockchain’s LUNA cryptocurrency nosedived the most, wiping out over 82.6% of its value in just 24 hours.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Terra’s LUNA Drops Down Over 80% in Past 24 Hours

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