LUNA token exchanged hands at $4.51 as of 3:40 a.m. ET on Wednesday, representing a decline of 85% in just 24 hours. The slide was related to a further worsening of its stablecoin UST’s dollar peg, which hit $0.27.
The dollar peg has been worsening over the last few days as investors flee. The situation saw the Luna Foundation Guard, which supports the Terra ecosystem deploy $1.5 billion in reserves to salvage the peg.
LUNA’s hit following the loss of the UST peg is believed to be connected to its role in giving stability to the stablecoin.
Stablecoin owners have now lost about two-thirds after the recent decline. The stablecoin hit the lowest point after falling to $0.27.
LUNAUSD is currently down -66.31%, BTCUSD is down -1.70%.
