TRENDING:
Oil price
XAU/USD
EUR/USD
GBP/USD
Silver
Sponsored by
|

Breaking: Terra restarts blockchain while LUNA trades around $0

Breaking: Terra restarts blockchain while LUNA trades around $0
FXStreet TeamFXStreet TeamFXStreet

In a recent tweet, Terra announced that its blockchain resumed block production. Still, validators decided to disable on-chain swaps and close IBC channels while enabling users to bridge off-chain assets, such as bETH, to their native chains. 

Binance CEO Changpeng Zhao said to be "very disappointed" with how the Terra team handled the collapse of UST and LUNA. He mentioned having requested Terra to "restore the network, burn the extra minted LUNA, and recover the UST peg" but did not receive any positive answers. Based on this stance, Zhao decided to suspend trading for LUNA and UST to protect its customers.

While other cryptocurrency exchanges follow suit, some market participants remain hopeful that LUNA will bounce back. The only problem with this thesis is that the Terra team has increased the token's circulating supply from around 377 million LUNA to more than 170 billion LUNA in the past 24 hours.

Such an enormous amount of tokens put into circulation would make it nearly impossible for LUNA to recover some of the market value it lost after the death spiral.  

Terra price chart
 

LUNA circulating supply 

Author

FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

More from FXStreet Team
Share:

Editor's Picks

Ripple correction pauses, but recovery prospects remain limited

Ripple correction pauses, but recovery prospects remain limited

XRP hovers above the critical $1.00 support level but faces diminishing recovery potential. Binance XRP futures Open Interest falls to $189 million, the lowest level in three months.

Crypto Today: Bitcoin, Ethereum and XRP struggle to find footing amid spot ETF outflows

Crypto Today: Bitcoin, Ethereum and XRP struggle to find footing amid spot ETF outflows

Cryptocurrency prices are broadly consolidating near key lower support levels on Wednesday, led by Bitcoin, hovering around $74,000. Ethereum sits above $2,000 while its upside remains structurally capped. Ripple, meanwhile, holds delicately above $1.00.

Bitcoin at risk of sharp moves as leverage builds in derivatives markets

Bitcoin at risk of sharp moves as leverage builds in derivatives markets

Bitcoin remains in a capped tone, trading around $73,800 on Wednesday after slipping to a low of $72,727 following the previous day’s hot US inflation figures. Institutional demand continues to weaken, with BTC spot ETFs recording a $95 million outflow on Tuesday, marking the fourth straight day of withdrawals.

Chainlink holds at $10 as Moody’s Ratings completes CCIP testnet pilot

Chainlink holds at $10 as Moody’s Ratings completes CCIP testnet pilot

Chainlink edges higher on Wednesday, taking a breather after the previous day’s 3% decline. Moody’s Rating completes the testnet pilot on Chainlink’s CCIP to distribute credit assessment data across multiple blockchain networks simultaneously.

Bitcoin: Bears tighten grip as BTC eyes fifth weekly loss

Bitcoin: Bears tighten grip as BTC eyes fifth weekly loss

Bitcoin (BTC) remains under pressure, down over 3% this week, trading near $75,500 on Friday and heading for its fifth straight weekly loss. Persistent outflows from US-listed BTC spot Exchange Traded Funds (ETFs), a sharp sell-off in US technology stocks, and rising market liquidations are weighing on sentiment and limiting Crypto King’s recovery attempts.