Terra (LUNA cryptocurrency

The Terra (LUNA -99.96%) blockchain is powered by two cryptocurrencies: Terra and Luna. Terra is a stablecoin tied to the value of fiat currencies.

Moreover, because the arbitrage mechanism would need to significantly increase the Luna supply (and decrease its value) to restore the stablecoin's peg, investors have also been selling Luna. Instead, the price of the stablecoin has continued to plunge, and panicked investors have been selling, adding to the downward pressure. The trader can then sell that TerraUSD coin to earn a profit of $0.02. At the same time, the arbitrage mechanism increases the supply of TerraUSD, which eventually brings its price back to $1. Earlier this week, TerraUSD lost its peg and the stablecoin saw its price plunge to $0.30. It has since regained some of its value, though its price is still well-below the $1 target. When the supply spiked and TerraUSD lost its peg earlier this week, the arbitrage mechanism failed to resolve the problem. And given Terra's runner-up position in the DeFi industry, investors had good reason to believe demand for TerraUSD would continue to rise. Arbitrage is the simultaneous buying and selling of an asset to capitalize on small price discrepancies in different markets. The Terra stablecoin maintains its price through a built-in arbitrage mechanism. Its price is kept stable by the computer code behind the arbitrage mechanism. The system works the same in reverse. And Luna is used to absorb stablecoin price volatility. For example, TerraUSD ( UST -75.49%) is pegged to the U.S. dollar.

Global market cap slides down by 3.11 per cent and is at $1.24 trillion, while majority top tokens witness downtrend in value in the last 24 hours.

The USDT Tether showed 0.08 per cent uptrend in its value in the last 24 hours. The crypto currency fell over 99 per cent. Also, Crypto.com has again suspended $LUNA trading and withdrawals. Cryptocurrency markets have crashed in the last 24 hours. XRP Ripple was also down by 4.79 per cent in the last 24 hours. The global market cap is down by 3.11 per cent in the last 24 hours and is at $1.24 trillion as of 7:15 AM IST, CoinMarketCap data showed.

Terraform Labs says it has halted the Terra blockchain and is working to "come up with a plan to reconstitute it."

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Terra (LUNA) blockchain network was briefly shut down to put in place a patch to prevent governance attacks. Meanwhile, the crypto market trading volume ...

Ethereum (ETH) was up by 0.19 per cent to $2,060.97. This has made crypto a top focus area for regulators around the world, reported Coindesk. The global crypto market capitalisation went up by 1.79 per cent at $1.27 trillion as of 8.50 pm. “Validators are applying a patch to disable further delegations, and they will coordinate to restart the network in a few minutes,” read a tweet posted by TerraLabs. In the DeFi segment, YFI (yearn.finance) was down by 8.37 per cent at $10,265.95 and Terra (LUNA) was trading with a loss of 98.56 per cent at $0.007651. Avalanche (AVAX), however, was up by 5.95 per cent at $32.04, Uniswap (UNI) by 5.85 per cent to trade at $5.07 and Aave (AAVE) by 6.06 per cent at $81.56. Dogelon Mars (ELON) gained 9.12 per cent to trade at $0.0000005189, Floki Inu (FLOKI) lost 2.59 per cent at $0.000007318 and Samoyed Coin (SAMO) was down by 19.29 cent at $0.005751. Not the people, nor the polity. Dogecoin (DOGE) was up by 7.37 per cent at $0.08913. Its volume to market cap ratio stands at 0.2287. Rival Shiba Inu (SHIB) was up by 7.9 per cent at $0.00001232. Among other major coins, Cardano (ADA) was up by 7.8 per cent at $0.5197, Algorand (ALGO) was trading with a gain of 4.9 per cent at $0.4547, Binance Coin (BNB) was up by 13.82 per cent at $299.42, Solana (SOL) was trading with a loss of 2.88 per cent at $47.27, and Polkadot (DOT) was up by 8.78 per cent at $9.43. Today’s top gainer was Sweet SOL (SSOL), which was up by 1809.22 per cent at $0.00001063. The top loser was DragonKnight The warning signs are flashing for all to see. (DK), which was down by 99.58 per cent at $0.04577.

The dramatic crash of Terra (Luna), ranked among the top 10 most valuable cryptocurrencies, has wreaked havoc in the lives of investors who are feared they ...

I guess no house and savings then," the user posted. I'll become homeless." "The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads," it tweeted.