Terra (LUNA) trading volume surge 200% as market adjusts to death spiral
It took just seven days for the Terra (LUNA) ecosystem to spiral down as prices came crashing from $85 on May 5 to nearly $0 on May 12. As the market slowly gained clarity on what transpired, the trading volume of LUNA saw a steep recovery of over 200% over the weekend.
As a result of UST de-pegging, which crashed the LUNA market, LUNA investors mirrored the price dip as CoinGecko recorded the decline of trading volumes to $178.6 million recorded the fall down of trading volumes to $178.6 million on May 13 — a number that was last seen in Feb 2021.
Terraform Labs CEO and co-founder Do Kwon sought damage control on the same day as he proposed a revival plan for Terra’s comeback, which involves compensating UST and LUNA holders for holding the tokens during the crash.
Despite the risks involved, Terra’s ‘insane volatility’ still serves as an attractive market for many short-term investors — mainly due to the fact that LUNA momentarily gained 600% in value on May 14.
(only need a few more 100x's to get back to $1)
As investors try to recoup their losses while others attempt to cash in on Terra’s comeback, the trading volume of LUNA surged over 200% back to $6 billion. Before the crash, the LUNA ecosystem consistently recorded over $2 billion in trading volumes on average over the past two years.
However, right when LUNA prices tumbled between May 10 and May 13 morning, its trading volume surged as investors attempted to reduce their losses — ranging from $5 billion to $16 billion. At its peak, LUNA’s trading volume recorded an all-time high of $16.15 billion on May 11.
Due to the various factors stated above, LUNA regained its trading volume and trades at $0.00025 at the time of writing. According to data from CoinMarketCap,
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