It only took a week for the Terra (LUNA) ecosystem to crumble. Its prices plummeted from $85 on May 5 to virtually $0 on Thursday. However, as the market gradually realized what had happened, the LUNA trading volume increased by more than 200% over the weekend.
Despite the risks, Terra’s “insane volatility” remains an attractive market for many short-term investors. It owes mainly to LUNA’s 600% rise in value on Saturday.
LUNA trading volume up – A comeback?
Do Kwon sought damage control on the same day he announced a resuscitation plan for Terra’s comeback. This included rewarding UST and LUNA holders for holding the tokens during the crash.
The trading volume of LUNA increased by nearly 200% to $6 billion. This occurred as investors tried to recoup their losses and others tried to profit from Terra’s rebound. Over the previous two years, the LUNA ecosystem consistently registered over $2 billion in trade volumes until the crisis.
However, as LUNA prices fell between May 10 and May 13, trading activity increased as investors sought to mitigate their losses, ranging from $5 billion to $16 billion. On May 11, the trading volume peaked at $16.15 billion, an all-time high.
Because of the factors mentioned above, LUNA has regained its trading volume and is currently trading at $0.00025 at the time of this writing. According to CoinMarketCap data, Binance accounts for 68.26% of LUNA trading volume, followed by KuCoin at 9.52% and FTX at 1.13%.
A temporary hiccup
Users of Crypto.com reported concerns about LUNA trades being reversed on the exchange’s mobile app.
Kris Marszalek, CEO of Crypto.com, later acknowledged that an internal issue caused the system to display incorrect values, resulting in 30-40x profits for several investors.
As a result, all users could not trade on Crypto.com. However, Marszalek informed everyone that “all user accounts have been re-enabled” after a day of reviewing the reported system malfunction.