Terra’s LUNA Drops to Almost $1 After 90% Weekly Plunge

Terra's LUNA continued its third consecutive day of sliding as the token fell 96% in the past 24 hours to reach price levels previously seen in August 2021.

Anchor, the decentralized finance (DeFi) platform that provides yields on UST deposits, saw total value locked (TVL) fall by $11 billion in the past two days. The drop came after TVL peaked at $17 billion just a week ago.

DeFi platfrom Anchor saw TVL drop $11 billion. (DeFiLlama)

LUNA fell to almost $1.30 at the time of writing on Wednesday as the depegging of the UST stablecoin with U.S. dollars contributed to waning sentiment among traders for LUNA.

Selling pressure on LUNA came as its parent foundation issued 46 million tokens in the past day to maintain UST’s 1:1 peg with the U.S. dollar, data shows.

Unmute

The price action represented one of the biggest drops for a major cryptocurrency. Data shows LUNA's price has dropped 90% in the past week and 7% in the past hour alone. The token is now down 92% since lifetime highs of $119 in April 2022, just more than a month ago.

LUNA fell to as low as $7.62 during Asian hours. (TradingView)

Social sentiment on social media sites for LUNA remained poor among traders. Meanwhile, suicide helplines and posts are trending on Terra’s Reddit forum, at time of writing.

UPDATE (May 11, 12:30 UTC): Updates headline and story to reflect the latest price of LUNA.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Follow @shauryamalwa on Twitter

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

10 Years of Decentralizing the Future