Yugocean
Valued Contributor
Terra (Luna), the major currency on the Terra network, is practically worthless, and HODLers have begun selling their holdings in a panic sale.
Meanwhile, the reasons for Luna's depreciation are being thoroughly investigated. The major cause for the drop in the value of Luna has emerged to the fore amid many speculations: a rise in its supply.
The maximum market supply of Terra (Luna) was intended to be 1 billion, but circulation has risen to over 7 billion from 346 million just four days earlier. This indicates that in the last several days, the supply of LUNA has expanded by more than 20 times, and it has even surpassed its maximum.
With LUNA's current market cap, the crypto market couldn't handle such a massive supply, and Terra (Luna) was demoted to shitcoin status.
The current supply of Terra (LUNA) is 3.45 billion, which is still increasing, despite burning. If Luna's supply continues to grow, its price will continue to fall.
Meanwhile, the reasons for Luna's depreciation are being thoroughly investigated. The major cause for the drop in the value of Luna has emerged to the fore amid many speculations: a rise in its supply.
The maximum market supply of Terra (Luna) was intended to be 1 billion, but circulation has risen to over 7 billion from 346 million just four days earlier. This indicates that in the last several days, the supply of LUNA has expanded by more than 20 times, and it has even surpassed its maximum.
With LUNA's current market cap, the crypto market couldn't handle such a massive supply, and Terra (Luna) was demoted to shitcoin status.
The current supply of Terra (LUNA) is 3.45 billion, which is still increasing, despite burning. If Luna's supply continues to grow, its price will continue to fall.
