Terra (LUNA) Loses Nearly $39B In Market Cap In 5 Weeks, Crypto Users Lament

Terra (LUNA) Loses Nearly $39B In Market Cap In 5 Weeks, Crypto Users Lament 

As LUNA continues its free fall, cryptocurrency users have expressed concerns about the ripple effect the massive dip could have on the entire market. 

In what may seem like a rug pull for Terra (LUNA) investors, the cryptocurrency has suffered one of the worst losses since it was created, as it continues to see a huge chunk of its value evaporate into thin air.

LUNA’s Recent Performance 

LUNA, which had a market capitalization of over $40 billion a month ago, has recorded a major loss of nearly $39 billion in the hours leading to press time.

As of April 5, 2022, LUNA had a market capitalization of above $41 billion, which puts it in the top 10 cryptocurrency rankings. As a matter of fact, for most of April, LUNA ranked as the eighth-largest cryptocurrency by market capitalization, with a unit of the coin valued around $115 at the time.

However, LUNA is apparently far from its glory days, as the token has so far plummeted to a low of $4.37 earlier today, with many of its short term investors converting their holdings to stablecoins.

At press time, LUNA is changing hands around $5.65 and ranked as the 33rd largest cryptocurrency, with a market cap of $2.7 billion.

Although the entire cryptocurrency market has been on the back foot lately, LUNA’s capitulation is as a result of investors’ lack of trust in the Terra team, following recent developments that came up in relation to the company’s claims that its stablecoin TerraUSD (UST) is backed by Bitcoin.

LUNA is not the only Terra token that has suffered greatly. UST, the stablecoin that is supposed to be pegged to $1.00, fell to a low of $0.31 earlier today.

People Lament the Effect of LUNA Dip on Cryptos 

The unfortunate incident is still a major shock to the cryptocurrency community as many continue to ponder the effects of this tremendous loss in LUNA’s value to the entire cryptocurrency industry.

A cryptocurrency investor, who goes by the pseudonym Altcoin Psycho, took to microblogging platform Twitter to lament the massive dip in LUNA and its effect on the entire crypto, saying:

“39 Billion dollars has been erased from Luna’s Market Cap in the last 5 weeks. Still in awe at the magnitude of this and the massive ripple-effects it will have on crypto.”

Responding to the post, another crypto enthusiast noted that the massive decline in the value of LUNA will prompt the public to steer clear of crypto-related investments.

Not So True

It is common knowledge that people are always scared to invest in any financial instrument that is filled with sad stories just like the LUNA incident.

However, things are expected to change as soon as the cryptocurrency market stabilizes and things get back to normal.

Terra’s team is already working round the clock to change the situation for the better as they continue to seek ways to raise funds to further bolster the assets backing the UST stablecoin.

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Original Source :thecryptobasic.com

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