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The critical period of the Luna (Terra) collapse was around May 7–13, 2022, with the most intense “death spiral” occurring from May 9 to May 12. coindesk.com
Brief timeline
• May 7, 2022: UST began showing clear signs of depegging, falling from $1 to around $0.985. Large amounts of UST were exchanged in Curve liquidity pools, mass withdrawals from the Anchor Protocol began, and signs of capital flight emerged. This was the trigger phase of the collapse.
• May 8–9: The depegging worsened. On May 9, UST plunged to around $0.35, while LUNA rapidly fell from the $60–$80 range, officially setting the death spiral in motion.
• May 10–12: The peak of the collapse.
• May 10–11: LUNA continued to plummet, falling below $1, while UST lost its peg further.
• May 12: LUNA plunged by more than 96% in a single day (nearly 99% at one point), falling to a few cents or even less, close to zero. Its supply surged dramatically due to the protocol’s mechanisms. The Terra blockchain was halted multiple times, and several exchanges began delisting the related trading pairs.
• May 13 and beyond: The collapse continued, with UST and LUNA nearing zero and about $40–50 billion in market value wiped out within days.
LUNA had previously reached an all-time high of around $119 in early April 2022, at one point exceeding $40 billion in market capitalization. The entire event resulted from a vicious cycle—a “death spiral”—between UST losing its peg as an algorithmic stablecoin and its mint-and-burn mechanism with LUNA.
The critical period of the Luna (Terra) collapse was around May 7–13, 2022, with the most intense “death spiral” occurring from May 9 to May 12. coindesk.com
Brief timeline
• May 7, 2022: UST began showing clear signs of depegging, falling from $1 to around $0.985. Large amounts of UST were exchanged in Curve liquidity pools, mass withdrawals from the Anchor Protocol began, and signs of capital flight emerged. This was the trigger phase of the collapse.
• May 8–9: The depegging worsened. On May 9, UST plunged to around $0.35, while LUNA rapidly fell from the $60–$80 range, officially setting the death spiral in motion.
• May 10–12: The peak of the collapse.
• May 10–11: LUNA continued to plummet, falling below $1, while UST lost its peg further.
• May 12: LUNA plunged by more than 96% in a single day (nearly 99% at one point), falling to a few cents or even less, close to zero. Its supply surged dramatically due to the protocol’s mechanisms. The Terra blockchain was halted multiple times, and several exchanges began delisting the related trading pairs.
• May 13 and beyond: The collapse continued, with UST and LUNA nearing zero and about $40–50 billion in market value wiped out within days.
LUNA had previously reached an all-time high of around $119 in early April 2022, at one point exceeding $40 billion in market capitalization. The entire event resulted from a vicious cycle—a “death spiral”—between UST losing its peg as an algorithmic stablecoin and its mint-and-burn mechanism with LUNA.