Terra's LUNA falls below $8 after 90% weekly plunge

Terra's LUNA falls below $8 after 90% weekly plunge

The value of Anchor, Terra's largest DeFi protocol, has dropped by about $11 billion in the last two days.

Terra's LUNA continued its slide for the third consecutive day, falling 73% in the last 24 hours to a price level previously reached in August 2021.

Anchor, the decentralized financial platform (DeFi) that provides returns on UST deposits, saw total value locked (TVL) fall $11 billion over the past two days. The drop came after TVL peaked at $17 billion a week ago.

LUNA traded as low as $7.62 in Asian morning hours today, as the unpegging of the stable TerraUSD (UST) to the U.S. dollar contributed to a weakening underlying sentiment among traders for LUNA.

The selling pressure on LUNA came as the parent company issued 46 million tokens in the past day to maintain UST's peg to the U.S. dollar, data showed.

The price action represented one of the largest declines for a major cryptocurrency. Data shows that LUNA prices have fallen 90% in the last week and 7% in the last hour alone. Tokens are now down 92% since peaking at $119 in April 2022, just over a month ago.

Sentiment on social media sites for LUNA remained poor among traders. Meanwhile, suicide aids and posts trend on Terra's Reddit forum at writing time.