Terra’s LUNA drops to under $8 after 90% weekly plunge

Terra's LUNA continued its third consecutive day of slide as they fell 73% in the past 24 hours to reach price levels previously seen in August 2021.

Anchor, the decentralized finance (DeFi) platform that provides yields on UST deposits, saw total value locked (TVL) fall by $11 billion in the past two days. The drop came as TVL peaked at $17 billion just a week ago.

DeFi platfrom Anchor saw TVL drop $11 billion. (DeFiLlama)

LUNA traded as low as $7.62 in Asian morning hours today as the depegging of TerraUSD (UST) stablecoin with U.S. dollars contributed to a waning fundamental sentiment among traders for LUNA.

Selling pressure on LUNA came as its parent foundation issued 46 million tokens in the past day to maintain UST’s peg with the U.S. dollar, data show.

The price action represented one of the biggest drops for a major cryptocurrency. Data shows LUNA prices have dropped 90% in the past week and 7% in the past hour alone. The tokens are now down 92% since lifetime highs of $119 in April 2022, just more than a month ago.

LUNA fell to as low as $7.62 in Asian hours. (TradingView)

Social sentiment on social media sites for LUNA remained poor among traders. Meanwhile, suicide helplines and posts trend on Terra’s Reddit forum at writing time.