Terra LUNA Falls, The Price Is Not Up To Zero Rupiah

JAKARTA, KOMPAS.com – Assets crypto- Terra (LUNA) fell to 0.000035, down 99.98 percent. The decline in LUNA occurred two days ago, with a massive sell-off by investors.

In fact, now the digital currency is not included in the largest crypto market capitalization, namely with a market capitalization of 240 million US dollars.

Collect CNBC, this week digital currencies have fallen 16 percent, and billions of US dollars of digital assets disappeared from the crypto market. A large part of the reason is the fall of stablecoin TerraUSD (UST), which should have been around 1 US dollar, is now only around 16 cents.

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UST has been in decline since the end of last week and is trading at 14 cents, according to CoinGecko data. The weakening of this stablecoin also led to the weakening of Terra LUNA, which is now zero in value.

Algorithmically, UST works through a complex system of token printing and burning to maintain price stability. The UST token is created by splitting the multiple cryptocurrency, LUNA to maintain the value of the US dollar.

But recent extreme market volatility has tested UST, and UST has been unable to hold on to its position. Terra LUNA even stopped trading twice in the last 24 hours.

Vijay Ayyar, vice president of corporate and international development at crypto exchange Luno said the crypto market has now been hit by a number of other headwinds including higher inflation and rising interest rates. This led to a sell-off in global stock markets, with which crypto prices have a correlation.

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“The Luna or UST situation has hit market confidence. Overall most crypto assets are down more than 50 percent. This is what is causing concern, plus global inflation, slowing economic growth which does not bode well for crypto,” said Ayyar.

On the other hand, the price of Bitcoin (BTC) rose 8 percent this afternoon above the level of 30,000 US dollars after previously being below 27,000 US dollars. According to Ayyar, the strengthening of bitcoin is only short term, because the trend of the crypto market is currently weakening.

“In these market conditions, it’s normal to see a sharp increase of 10 to 30 percent. This is usually a bounce, when the market is bearish, and tests the previous support level as resistance,” said Ayyar.

Read also: Terra Luna Drops 53.5 Percent, Check Crypto Prices Today

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