There’s a massive carnage that’s taking place in the crypto market these days. Terra is dropping in price and below, we’ll analyze the reasons for the digital asset’s price drop.
Terra price drop explained
Financial Express online publication is analyzing the reasons for which Terra is dropping in price.
They revealed that Terra (LUNA) holders are 96 percent poorer than what they were 7 days back.
“LUNA price has fallen by over 96 per cent in the last 7 days to $3.36. In the last 24 hours itself, LUNA has fallen by around 90 percent,” says the online publication mentioned above.
They also reported that Terra’s ranking has also alarmingly dropped to 37th in terms of market capitalization.
The fall in Terra’s price and ranking to such lows is more shocking because it used to be one of the constants in the list of top 10 cryptos on CoinMarketCap till a few days back, according to Financial Express.
Reasons for Terra’s price drop from the past few days
It’s been revealed that the popular crypto exchange Binance even temporarily stopped the withdrawal of UST and LUNA leading to a cascading effect on prices of both cryptos.
The current debacle has highlighted the problems with algorithmic-based stable coins.
“Terra’s fall could be attributed to large scale selloffs of the LUNA tokens owing to the reported “de-peg” of the algorithmic stable coin. This sellof must have also got exacerbated with the market already being in a laregly bearish mode,” Anshul Dhir, COO and Co-founder of EasyFi Network told FE Online.
If you’re wondering what’s in store for the digital asset, well check out the quote below.
“It’s now a wait and watch to see how the markets progressively stabilise,” said Dhir.
The whole crypto market is looking bloody today, and you should check out the prices in the market to see more details about the prices of the digital assets.