Terra (LUNA) volume surges 200% as market adjusts to death spiral

Terra took only 7 days (Luna) ecosystem spiraled downward as prices plummeted from $85 on May 5 to nearly $0 on May 12. LUNA’s trading volume rebounded sharply by more than 200% over the weekend as the market gradually became clear about what had happened.

LUNA investors reflect price drop as UST decoupling causes LUNA market to crash as volume recorded on CoinGecko drops to $178.6 million Record On May 13, trading volume fell to $178.6 million — the last figure seen in February 2021.

LUNA trading volume fell. Source: CoinGecko

CEO and Co-founder of Terraform Labs right of way Seeking damage control on the same day as him Revival plan proposed for Terra’s comebackwhich involves compensating UST and LUNA holders for their tokens during the crash.

Despite the risks, Terra’s “wild volatility” remains an attractive market for many short-term investors — mostly because LUNA instantly appreciates 600% May 14.

LUNA’s trading volume surged more than 200% to return to $6 billion as investors tried to cover losses and others tried to profit from Terra’s comeback. Before the crash, the LUNA ecosystem had been averaging over $2 billion in trading volume for the past two years.

LUNA volume returns. Source: CoinGecko

However, just as the price of LUNA plummeted on the morning of May 10 to May 13, its trading volume surged as investors tried to cut losses — ranging from $5 billion to $16 billion. At its peak, LUNA’s trading volume hit an all-time high of $16.15 billion on May 11.

Terra (LUNA)’s all-time high volume. Source: CoinGecko

Due to the various factors mentioned above, LUNA has regained its volume and is trading at $0.00025 at the time of writing.according to data Cryptocurrency exchange Binance from CoinMarketCap accounted for 68.26% of LUNA’s trading volume, followed by KuCoin with 9.52% and FTX with 1.13%.

related: Crypto.com Unblocks Users, Reverses LUNA’s Glitch Transaction, Makes 30-40x

On Friday, Crypto.com users expressed concern that LUNA trades on the exchange’s mobile app were withdrawn.

Crypto.com CEO Kris Marszalek later revealed that an internal bug caused the system to display incorrect prices, which resulted in numerous investors cashing out 30-40 times their profits.

Therefore, Crypto.com temporarily prohibits all users from trading. After a day-long review of the alleged system glitch, Marszalek informed that “all user accounts have been re-enabled.”

As Cointelegraph reported, the company offered $10 worth of in-house tokens Cronos (CRO) as a gesture of goodwill to affected investors.