Terra: Despite UST’s $2B reserves, why is LUNA having a bad day

city Santiment county Luna Pool Tether Santiment Bitcoin Luna

12.04.2022 - 01:23

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ambcrypto.com:

For investors looking for a refuge as their portfolios started to bleed, Terra [LUNA] looked like a safe bet. However, at press time, LUNA too seemed to be celebrating a Game of Thrones-style red wedding as it recorded both significant daily and weekly losses in price.

As LUNA and the other top nine cryptos struggle to stay whole, here’s what you should know.

At press time, LUNA was the ninth-largest crypto by market cap and was switching wallets at $88.90. This was after losing 6.94% of its value in a day and 22.30% of its value in a week. In fact, LUNA recorded the biggest fall in terms of both daily and weekly price among the top-10 cryptos.

Not surprisingly, LUNA’s trading volumes also took a hard hit along with the latest drop. LUNA volumes fell from above three billion to around 2.24 billion in close to two days.

Source: Santiment

Worth noting here is that the tremendous drop in trading volumes took place despite the news that the Luna Foundation Guard planned to add $100 million worth of AVAX to its reserve for the TerraUSD [UST] reserve.

At press time, the official stats reported that the LFG reserves had $1.68 billion in Bitcoin, $398.59 million in USD Coin [USDC], $372.36 million in LUNA, and $164.41 million in Tether [USDT]. In total, around $2.61 billion.

<p lang=«en» dir=«ltr» xml:lang=«en»>Welcoming $AVAX as the second major layer one crypto asset next to $BTC as part of the $UST Reserve.

The inclusion of @avalancheavax's native token marks the start of a diverse pool of layer one crypto assets helping support the $UST peg.

It's only just the beginning frens. https://t.co/5utdQMVAiw

— LFG | Luna Foundation Guard (@LFG_org) April 7, 2022

So, is it safe to conclude that LUNA is in for some corrections regardless of