The two biggest crypto assets from the Terra blockchain have sunk to new lows, leaving investors with empty pockets. LUNA has slumped to £0.00000082 per coin, while terrausd (UST) has plummeted to £0.036 per unit. Following a temporary suspension and restart of the Terra blockchain, block production was again halted at block height 7,607,789. At 1:46 pm (BST), the team rebooted the chain and stopped onchain swaps.
People became concerned about terrausd (UST) five days ago when it deviated slightly from the £0.82 parity. Terraform Labs co-founder Do Kwon, on the other hand, dismissed rumors and speculation as an “amusing morning” and claimed that Terra critics were now “all poor.” Kwon insisted that UST’s de-pegging was no major concern at the time.
Then Curve Finance, a decentralised exchange (dex), saw that there was a lot of terrausd (UST) selling happening on the trading site. The Luna Foundation Guard (LFG) explained that it was lending £1.23 billion in bitcoin (BTC) and terrausd (UST) to market makers to safeguard the peg.
By this time the community was much more disturbed, and Anchor Protocol began to witness substantial withdrawals. Before the upheaval, Anchor System was the third-largest decentralised finance (defi) protocol, with about £14 billion locked. Anchor’s total value locked (TVL) fell from £14 billion to £336 million between May 5 and today.
After reaching a high of £0.69 the day before, terrausd (UST) is now trading for £0.077 per coin. Around 11 hours before press time, UST hit a low of £0.036 per unit. While many platforms have disabled Terra-based wallets, UST deposits are still accepted on a few exchanges. On Friday, FTX is the top UST exchange, and tether (USDT) is the most popular UST trading pair. Tether accounts for 37.78% of all UST trades.
LUNA has fallen even worse than UST, selling for less than a penny. The price of LUNA has fluctuated between £0.036 and £0.00000082 per unit over the last 24 hours. It is now difficult to sell LUNA because most exchanges do not accept Terra chain deposits. LUNA’s most active exchange today is FTX, and BUSD is the most active trading pair, accounting for 73.64% of all LUNA swaps.
Binance founder Changpeng Zhao, also known as CZ, expressed his disappointment in the Terra team after LUNA and UST were suspended on his platform.