Despite the risk in Terra’s trade, Terra’s insane volatility still serves as an attractive market for many short-term investors – majorly because LUNA momentarily gained 600% in value on May 14th.
It required just 7 days for the Terra (LUNA) ecosystem to spiral down as prices came crashing from $85 on May 12th. As the market slowly got clarity on what transpired, the trading volume of LUNA witnessed a steep recovery roughly above 200% over the weekend.
Because of UST de-pegging which crashed the LUNA market, LUNA investors reflected the price dip as CoinGecko recorded the decline of trading volumes to $178.6 million recorded the fall down of trading volumes to $178.6 million on May 13 — a number that was last seen in Feb 2021.
Terraform Labs CEO and co-founder Do Kwon sought damage control on the same day as he suggested a revival plan for Terra’s comeback, which involves compensating UST and LUNA holders for acquiring the tokens in the course of the crash.
As investors try to recoup their losses while others attempt to crash in on Terra’s comeback, the trading volume of LUNA surged over 200% back to $6 billion. Before the crash, the LUNA ecosystem without relenting recorded over $2 billion in trading volumes on average over the past two years.
Notwithstanding, right when LUNA prices tumbled between May 10th and May 13th morning, its trading volume spiked as investors tried to decline their losses—ranging from $5 billion to $16billion. At its peak, LUNA’s trading volume recorded an all-time spike of $16.15billion on May 11.
Owing to the series of factors abovementioned, LUNA recovered its trading volume and trades at$0.00025 at the Writer’s time. As stated by the data from CoinMarketCap, crypto exchange Binance represents 68.26% of LUNA’s trading volume, followed by KuCoin at 9.52% and FTX at 1.13%.
On Friday, Crypto.com users raised concerns about trades being reversed on the exchange’s mobile application. Kris Marszalek, CEO of Crypto.com, later revealed that an internal error caused the system to display incorrect prices, which led to numerous investors cashing in 30-40x profits.
Because of this, Crypto.com temporarily hinders all users from trading. After the day’s review of the supposed system glitch, Marszalek informed us that “all user accounts have been re-enabled.”
According to Cryptolifedigital, the firm has given $10 worth of its in-house token Cronos (CRO) as a goodwill gesture to affected investors.