LUNA Price Fell More Than 90%, Fluctuations Continue

by in Cryptocurrency News

Terra LUNA fall

The price of LUNA, the native governance coin of the Terra blockchain fell by more than 94% in the last seven days. Although, in general, the crypto market sees difficulties now, LUNA's price drop was the most significant.

Related: TerraUSD Dropped Below Its $1 Peg

LUNA hit its lowest price in a year falling below $1 and trading at $0.8 for some time. The current price of LUNA is around $3.81.

As the US Fed announced raising interest rates crypto and financial markets as a whole have been facing difficulties. In the created situation, Terra's UST stablecoin lost its peg to the dollar.

UST is known to be a leading algorithmic stablecoin, which maintains its peg with the help of LUNA. In March, the founder of Terraform Labs, Do Kwon, revealed replenishing UST's reserves with billions of dollars of worth Bitcoins. Currently, UST continues to trade under its peg and costs $0.5.