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Terra (LUNA) Sees $106M In Liquidations With 97% Crash As UST Collapses To Below 40 Cents
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Avalanche Falls 40% As AVAX Finds Itself In The Midst Of UST's Unpegging

By Adrian Zmudzinski

The token of smart contract platform Avalanche (CRYPTO: AVAX) is now paying the price of enjoying being one of the assets locked as collateral to maintain the peg on Terra's (CRYPTO: LUNA) native algorithmic stablecoin TerraUSD (CRYPTO: UST). Just today, the token's price fell from its 24-hours high of $47.20 down to under $28 — a fall of nearly 41% in mere hours.

What Happened: Earlier on Wednesday, Terra's price fell by more than 97% as UST lost its peg to the dollar and Luna Foundation Guard — the non-profit backed by TerraLabs tasked with protecting UST's peg — emptied its cryptocurrency reserves in a futile attempt to stop the freefall, as reported by Cointelegraph.

According to official data, those reserves are now made up of 68.4% AVAX and fuel fears that — with its pre-dump 24-hours trading volume being under $2 billion — a major dump is incoming for the token. Luna Foundation Guard's reserves also fell from nearly $4 billion at the beginning of the month down to $103 million as of press time.

AVAX Price Action: As of press time, AVAX is trading at $34.65 after recovering 23% from its low of $27.96 reported earlier today.

Related Link: Can Terra (LUNA) Drop Lower?

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Dive Deeper:
Terra (LUNA) Sees $106M In Liquidations With 97% Crash As UST Collapses To Below 40 Cents
Terra (CRYPTO: LUNA) and its native stablecoin TerraUSD (CRYPTO: UST) brought each other down in a cryptocurrency market catastrophe that would not be…
Terra (LUNA) Crashes 45% As UST Stablecoin Massively Loses Peg Again
The native token of the Terra (CRYPTO: LUNA) blockchain crashed 56% over 24 hours as its stablecoin, TerraUSD (CRYPTO: UST), lost…
Terra plunges 60% in 24 hours. Why the crypto's price is crashing
Terra(LUNA) has had a whirlwind of a week with the cryptocurrency tumbling at an alarming rate
Can USDC Follow UST's Footpath? Probably Not, And Here's Why
On Wednesday, the cryptocurrency community saw TerraUSD (CRYPTO: UST) the native algorithmic stablecoin of the Terra (CRYPTO: LUNA) protocol lose its peg while bringing…
One subscription that gives you access to news from hundreds of sites
'Evil genius' may have caused Terra and Luna cryptocurrencies to crash in a 'death spiral'
The devastating effects of the crash of crypto "stablecoins" Terra and Luna are being felt by many but their crash…
Dogecoin Creator Says This Will Make You Lose Faith In 'Crypto Bros'
Billy Markus, co-creator of Dogecoin (CRYPTO: DOGE), believes that the latest cryptocurrency catastrophe is reason enough to lose faith in “crypto…
Get all your news in one place