The crypto news cycle over the last two weeks has largely been dominated by Terra (LUNA). The coin went from being one of the top ten most valuable crypto assets to ranking below 200. It all happened in days. So, will the stablecoin platform ever return to its heyday? Here are some highlights:
Terra has literally gone bust over the last week or so.
The coin has hit all-time lows albeit we have seen some slight recovery.
At the moment, LUNA is facing huge volatility with swings of up to 50% per day.
Data Source: Tradingview
Will Terra ever return to $120?
Terra (LUNA) was always seen as the crème on the cake as far as crypto goes. It was among ten of the most valuable assets in the market and for a long time, it traded above $100. But after periods of decline, the coin had settled at around $40 in 2022.
However, all that value was wiped out after its dollar-pegged UST stablecoin lost its peg. LUNA simply crashed and is now selling for pennies. A return to glory will not be that simple though. Although some slight recovery has been reported over the last few days, there is just so much volatility around LUNA to say for sure it coming back.
Besides, a lot of the things that need to happen to give LUNA a chance have not happened yet. UST is still de-pegged, and the Terra community is running out of ways to defend the stablecoin. It will be a miracle if LUNA returned to $10 let alone $120.
Should you buy the LUNA dip?
You can trade LUNA as of now, but don’t hold it. As noted above, due to high volatility, the coin is swinging wildly.
This gives short-term speculative traders a chance to win big. But for the long haul, LUNA is just too risky right now.