Schlagwort: crypto business

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The price of LUNA falls massively after the UST de-pegged from the US Dollar

After weeks of hyping due to the TerraUSD (UST) stablecoin release, the LUNA token has been forced to bite a humble pie after the same stablecoin de-pegged from the US dollar causing its price to drop massively. 

The price of LUNA, the native token of Terra has dropped by over 95% over the last five days with the bulk of the drop being registered today where it had fallen by about 86% at the time of writing.

In one week, LUNA has dropped from trading above $80 to its current price of $4.89 at the time of writing.

LUNA and the UST

Some analysts say that there is a possibility that there were no funds in the Terra project to support the UST and maintain its Dollar peg.

However, the Luna Foundation Guard (LFG), the organization that ensures UST maintains its $1 peg, has been putting a lot of effort into ensuring that there are no more losses and returning the UST peg to the Dollar.

Besides, Terra’s stablecoin reserve emptied its Bitcoin reserve by deploying $1.5 billion worth of BTC to support the UST and also defend the peg by adding the required liquidity to the ecosystems. The foundation also started to loan out coins to other trading firms and also 750 million UST tokens to accumulate BTC all aimed at defending the peg.

On May 5, the foundation had a total of 167,081 BTC ($3.5 billion) when it announced that it has added 37,863 coins more. However, the market effects did not seem to bother Do Kwon, Terra funder, he tweeted “Deploying more capital – Steady lads.”

However, after Kwon’s tweet, the foundation moved 42,500 coins to different crypto exchange platforms like OKX, but since then Kwon has not said a word.

How UST and LUNA work

UST and LUNA work together to maintain the $1 price using game theory and blockchain-based burn and mint mechanics. These mechanics acts as a shock absorber for UST price volatility by ensuring that traders can swap a $1 worth of UST for $1 worth of LUNA.

Although there were speculations on the future of LUNA, Today’s Doji candlestick showed that although bulls are buying at lower levels the bears are equally defending the lower levels, therefore, the selling and buying pressure are canceling out.

The post The price of LUNA falls massively after the UST de-pegged from the US Dollar appeared first on Coin Journal.

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Highlights May 11: Bitcoin loses over 20% in a week, LEO only gainer

The crypto market as a whole continues to suffer with most top 100 coins in the red at the time of writing. 

Top cryptos

Bitcoin lost around 5% in the last 24 hours, trading below $31,000. Ethereum and XRP suffered similar losses. The second biggest crypto is changing hands for just over $2,200. The biggest top 10 loser is Solana with a drop of 12%. 

Cryptos outside the top 10 did not do much better. Avalanche has shed over a quarter of its value so far today with further pain expected. Terra’s stablecoin UST, which lost its currency peg, is down 67%, trading for 30 cents per UST. 

Another big loser is NEAR, down 22% today and 33% this week. 

Top movers

Outside the top 20, the tendency was similar, with most coins losing 7-12% of their value. 

Notable victims of the severe market downturn include Algorand (-22%), Cosmos (-17%), Monero (-18%), ApeCoin (-21%), THORChain (-23%), Axie Infinity (-24%), Fantom and WAVES (each -20%), and the promising STEPN’s GMT (-27%).

Terra’s LUNA is in freefall, down 86% today and ranking 38th. Since the crisis with its stablecoin started, LUNA has lost 95% of its value.                

At the time of publication, the only cryptocurrency in the green was UNUS SED LEO, which has added 6% to its value. This cryptocurrency allows Bitfinex users to save money on trading fees. 

The extent of the discount depends on how much LEO the customer has in their account. LEO is at #22 and seems poised to break the top 20 soon.  

Trending

The biggest winner today is 1SAFU, a platform on Solana where users will be able to send and receive messages, SOL, and NFTs as a single transaction.

To sign up and use the service, one would only need a supported SOL wallet. 1SAFU holders are rewarded generously based on a tiered system. Its token SAFU is up 843% today.  

The post Highlights May 11: Bitcoin loses over 20% in a week, LEO only gainer appeared first on Coin Journal.

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Bitcoin’s sell-off is a massive buying opportunity, says Chamber of Digital Commerce CEO

Bitcoin price fell sharply on Monday to break below $30,000 and register its lowest level since July 2021. 

As the sell-off in the crypto market mirrored Monday’s bloodbath on Wall Street to hit lows of $29,996, over 40% of Bitcoin supply slipped into an unrealized loss. And on-chain data from Glassnode suggest more pain remains a possibility if the current outlook is compared to that of the 2018 bear market.

The picture could be worse given Bitcoin’s short-term correlation with stocks, which means more losses for stocks amid higher rates and other macro headwinds could see BTC also plummet. It’s looking increasingly bleak for Bitcoin, which could retreat beyond the $28k level.

But according to Perianne Boring, the CEO and founder of the Chamber of Digital Commerce, the drawdown is a “massive buying opportunity.”

“Everything is down,” Boring noted in an interview with CNBC’s “Squawk Box” on Tuesday, pointing to the rout seen in stocks and bond markets amid Fed’s tightening. The low prices offer a buy the dip opportunity, she told CNBC’s Andrew Ross Sorkin.

Among the biggest dip buyers this week was El Salvador, which snapped 500 BTC worth over $15 million. 

Boring also said people are trading Bitcoin like a traditional asset, yet the cryptocurrency is not. Again, the focus has been on BTC’s price although really it should be on the network value.  

In terms of where she thinks Bitcoin will go in the future, she said the benchmark cryptocurrency’s fair value as per valuation models, currently stands between $48,000 and $180,000.

Bitcoin reached its all-time high of $69,000 in November and, at current price levels, is trading nearly 54% off that peak.

The post Bitcoin’s sell-off is a massive buying opportunity, says Chamber of Digital Commerce CEO appeared first on Coin Journal.

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Top 3 coins to buy as the crypto market dips

The broader crypto market declined sharply at the beginning of May. Most coins in the top ten have all fallen by double figures since the beginning of the month. The dip however presents investors will have a decent chance to buy promising coins at a very discounted price. Here is why you should buy:

  • The crypto market has proved to be quite resilient over the last 5 months.

  • The market has had to deal with serious economic and geopolitical shocks

  • Crypto is likely to rebound and surge in the medium and longer term.

For the dip hunters out there, we have a list of three coins below that should be worth watching in May.

Terra (LUNA)

Terra (LUNA) is one of the leading stablecoin platforms in the world. In the month of May alone, the coin has lost over 30% of its value. We do not expect LUNA to rebound immediately. However, this is a project that is backed by very decent fundamentals.

For those of you looking for decent long-term investments in crypto, you won’t find a more suitable option than LUNA. The coin is very cheap right now, considering the potential it offers. It’s time to get it.

Kadena (KDA)

Kadena (KDA) is an innovative blockchain designed to address some of the challenges associated with Proof of Work networks. In essence, KDA offers the security of proof of work models while maintaining high speeds and scalability. The coin has dipped by over 25% in the last few days. It is a prime asset right now for global dip buyers.

Oasis Network (ROSE)

DeFi protocols like the Oasis Network (ROSE) have also seen sharp falls this month. ROSE is now over 20% down from its price at the start of May. However, considering that it remains one of the high potential DeFi projects right now, the 20% drop is a great opportunity to stock up on ROSE cheaply.

The post Top 3 coins to buy as the crypto market dips appeared first on Coin Journal.

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Here is why LUNA is down by more than 40% in the last 24 hours

LUNA is one of the worst performers amongst the major cryptocurrencies by market cap.

The bearish sentiment in the market grows ticker as the market lost over $100 billion in the last 24 hours. The crypto market has lost more than 2% of its value in the last 24 hours and the total market cap now stands below $1.5 trillion.

Bitcoin briefly dropped towards the $30k psychological level before rebounding to now trade at $31,800 per coin. Ether continues to trade above $2,400 and is up by less than 1% despite the broader market in a bearish situation.

However, the biggest loser amongst the top 20 cryptocurrencies by market cap is LUNA, the native token of the Terra ecosystem. 

LUNA is down by 44% over the past 24 hours and has lost its place amongst the top 10 cryptocurrencies by market cap. The coin now occupies 13th place in the market.

The bearish performance came after Terra’s UST stablecoin slipped below its dollar peg twice yesterday. UST dropped to $0.69 yesterday, resulting in questions about the stablecoin’s stability.

UST’s predicament led to LUNA losing more than 40% of its value over the last 24 hours.

Key levels to watch

The LUNA/USDT 4-hour chart is one of the most bearish amongst the top 20 cryptocurrencies by market cap. 

The MACD line is below the neutral zone, indicating bearish momentum. Furthermore, the 14-day RSI of 21 shows that LUNA is currently oversold.

At press time, LUNA is trading at $33.05 per coin. If the bearish trend continues, it could drop below the $30 support level soon.

However, LUNA has shown signs of recovery over the past few hours and could move past the first major resistance level at $39 before the end of the day.

The post Here is why LUNA is down by more than 40% in the last 24 hours appeared first on Coin Journal.