Some investors are still drawn to the “crazy volatility” of Terra’s short-term markets, particularly since LUNA briefly surged 600% in value on May 14.
The Terra (LUNA) ecosystem went from $85 on May 5 to practically $0 on May 12 in a span of only seven days. Over the weekend, LUNA’s trading volume surged by more than 200 percent as the market began to understand what had happened.
CoinGecko observed a drop in trading volumes to $178.6 million on May 13 due to the UST de-pegging, which caused a slump in the LUNA market. This was the lowest trading volume since February 2021.
CEO and co-founder of Terraform Labs Do Kwon attempted damage control while also proposing an improvement plan for Terra’s return, which included rewarding UST and LUNA token owners for holding the coins throughout the collapse.
It is still an appealing market for short-term investors because of the 600% surge in LUNA’s value on May 14, which has made Terra’s “crazy volatility” enticing.
LUNA’s trading volume increased by nearly 200 percent to $6 billion as investors tried to recover their losses and others tried to profit on Terra’s return. Over the previous two years, the LUNA ecosystem averaged more than $2 billion in trade activity.
Between May 10 and May 13 morning, LUNA’s trading activity spiked as investors sought to mitigate their losses, ranging between $5 billion and $16 billion. A record $16.15 billion was traded on May 11 when LUNA’s trading volume was at its highest ever.
LUNA has recovered its trading volume as a result of the considerations outlined above and is now trading at $0.00025. In terms of LUNA trading volume, Binance accounts for 68.26% of the total. KuCoin comes in second at 9.52% and FTX comes in third at 1.132%, according to CoinMarketCap.
Users of the Crypto.com mobile app expressed alarm on Friday regarding the reversal of LUNA transactions.
Crypto.com CEO Kris Marszalek subsequently admitted that the system displayed false pricing as a result of an internal glitch, leading to multiple investors cashing in 30-40x gains.
Therefore, Crypto.com temporarily restricted trading for all users. Marszalek said that “all user accounts have been re-enabled” after investigating the alleged system malfunction for a day.
Cronos (CRO), the in-house token of the firm, has been given to concerned investors as a goodwill gesture, according to Cointelegraph.