Terra’s (LUNA) trading volume has increased by 200 percent as the market adjusts to the death spiral.
Despite the hazards, Terra’s ‘crazy volatility’ remains an appealing market for many short-term investors, owing mostly to LUNA’s 600% rise in value on May 14. It just took seven days for the Terra (LUNA) ecosystem to collapse, with prices plummeting from $85 on May 5 to virtually $0 on May 12. As the market gradually realized what had happened, the trading volume of LUNA increased by more than 200 percent over the weekend. As a result of UST de-pegging, which devastated the LUNA market, LUNA investors mimicked the price drop, with CoinGecko recording a drop in trade volumes to $178.6 million on May 13 – a figure last seen in February 2021. On the same day that he offered a resurrection plan for Terra’s recovery, Terraform Labs CEO and co-founder Do Kwon tried damage control by rewarding UST and LUNA holders for holding the tokens throughout the crash.
Despite the concerns, Terra’s ‘crazy volatility’ remains an appealing market for many short-term investors, owing to the fact that LUNA briefly rose 600 percent in value on May 14. As investors strive to recoup their losses and others try to profit from Terra’s rebound, LUNA’s trading volume increased more than 200 percent to $6 billion. Prior to the catastrophe, the LUNA ecosystem averaged over $2 billion in trade volumes over the previous two years. However, as LUNA prices fell between May 10 and May 13 morning, trading activity increased as investors sought to limit their losses, which ranged from $5 billion to $16 billion. On May 11, LUNA’s trading volume reached an all-time high of $16.15 billion. Because of the aforementioned considerations, LUNA has recovered its trading volume and is now trading at $0.00025 at the time of writing. According to CoinMarketCap statistics, Binance accounts for 68.26 percent of LUNA trading volume, followed by KuCoin at 9.52 percent and FTX at 1.13 percent.