As Bitcoin tumbled to new lows on Monday, Terra (LUNA) price slipped 33.3% in the past 24 hours. In addition, the project’s stablecoin Terrausd (UST) lost stability, falling to $0.932008 per token. In addition, the Luna Foundation Guard bitcoin wallet and the secure Ethereum Gnosis address were emptied.
LUNA Price puts strong pressure on Terra’s stablecoin UST
Over the past 24 hours, more than $830 million has been liquidated from the crypto economy and Bitcoin (BTC) price has fallen to a low not seen since January 2022. In the past seven days, BTC has lost 20.2% in value against USD, and 11% of value has shrunk in the past 24 hours. Additionally, numerous cryptoassets have suffered deeper losses as Terra (LUNA) is down 33.3%.
The stress has caused the project’s UST peg, or $1 parity, to fall below the dollar value. At its low on Monday, Terrausd (UST) fell to $0.932008 per unit, according to statistics from Coingecko.com. UST’s 24-hour price range on Monday was between $0.932008 and $0.999601 per unit.
Luna Foundation empties Bitcoin and Ethereum wallets
In addition to the losses UST and LUNA took on Monday after it was announced that the Luna Foundation Guard (LFG) would lend $1.5 billion in BTC and UST, both the Bitcoin and Ethereum public wallets of LFG emptied. The LFG bitcoin wallet once held 42,530.82 BTC, but sent the entire supply to another wallet in a single transaction. Additionally, LFG’s Gnosis secure address, which once contained millions of dollars in USDC and USDT, was also emptied.
Deploy more capital – stable guys
– Mach Kwon 🌕 (@stablekwon) May 9, 2022
As of May 3rd, LFG Gnosis safe address was holding $143 million and today it is currently holding $195. At 2:36 p.m. ET, Terra co-founder Do Kwon tweeted “Put more capital – stable guys.” UST’s price improved a little Monday after the capital stake, but has fallen between 4.5% and 6.5% in the past few hours.
While other stablecoin assets like USDC and USDT felt pressure today and posted much smaller percentage losses, the two largest stablecoins by market cap have held their ties. Tether fell to $0.995691 per unit on Monday, while the USD coin (USDC) collapsed to $0.994630 per unit.
Binance usd (BUSD) is exchanging hands at $0.996616 and DAI was trading at $0.995420. Most USD-pegged stablecoins except UST continued to trade for at least $0.975328 to $0.99 per token. Meanwhile, towards the end of this writing at 4:00 p.m. ET, UST has attempted to regain $1 parity but has not yet achieved the goal. As of press time at 4:30 p.m., the stablecoin UST has managed to jump to $0.956017 per unit.
What do you think of the stablecoin UST falling from its $1 parity on Monday? Let us know what you think about this topic in the comment section below.
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