What is the market value of LUNA currency? Introduction to the total market value of LUNA currency

Terra, a blockchain protocol capable of producing a price-stable global payment system using fiat currency-pegged stablecoins, is developed by Terraform Labs and its co-founders DoKwon and Daniel Created by Shin in 2018, the asset was created primarily to combine the price stability and widespread adoption of fiat currencies with the censorship resistance of Bitcoin.

What is the market value of LUNA currency? As of 15:52 on May 13, 2022, the market value of LUNA currency is 30.451 billion. LUNA is the native token of the Terra network and has recently grown by nearly 70%. StakingRewards data from Coindesk shows that the price of the LUNA token has surged over the past week, making it the second-largest staked asset in the world, surpassing Ethereum (ETH) with $28 billion worth of stakes. As UST prices plummeted, LUNA prices plunged 96% in the past 24 hours as of May 12. In light of the crash, UST founder DoKwon came up with a plan to salvage the destructive situation by absorbing the stablecoin supply as quickly as possible. fxstreet reported that Solana’s price may also be at risk following the collapse of LUNA, which saw a drop of up to 66%. LUNA price fell sharply as Terra’s stablecoin UST plunged below $1, causing investors to sell off. The reason behind the collapse of UST was the depreciation of the US dollar on May 9, 2022. BusinessToday analysts mentioned that the incident caused a strong shock in the crypto market because it revealed the disadvantages of stablecoins directly relying on supporting algorithms (unlike USDT and USDC, which are backed by fiat currencies). As a result, the crash caused investors to sell off LUNA, resulting in the largest decline on record. Looking back at the beginning of 2022, LUNA prices rose sharply due to UST’s high demand for the Anchor protocol, which increased the APY by 20%. However, due to economic uncertainty, this particular stablecoin model may not be the most stable option right now. Although LPG invested in Bitcoin as a support fund, it did not really help when facing actual problems. Is investing in Terra safe? It is important to know that there are many risks associated with crypto-assets that do not rule out Terra. Financial experts view cryptocurrencies as unstable, speculative investments. Once it reaches new highs, it may fall back. As for Luna, the bigger risk is that investors could suffer losses if Terra’s stablecoin fails to maintain its peg. This acts as a volatility absorption mechanism for the Terra stablecoin. This could make it correspond to Terra's blockchain. Although the coin is currently performing well, it is impossible to predict its future performance. It's unclear whether it can withstand high volatility or a bear market. If investing in cryptoassets, it is also important for investors to understand any regulatory issues within the protocol.

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