The rise and fall of Terra — $LUNA and UST.
Apr 5, 2022: $LUNA prints an all-time high near $119, with a market cap around $41B. Its sister coin UST, an algorithmic stablecoin meant to hold $1 without dollar reserves, peaks near an $18.7B market cap — briefly the third-largest stablecoin.
May 7–9, 2022: Large UST sells hit Curve's 3pool. The peg slips, then breaks. Luna Foundation Guard burns through tens of thousands of BTC trying to defend it. UST slides toward about $0.35. The mint/burn design starts minting huge amounts of LUNA to absorb UST redemptions — which dumps LUNA harder.
May 12–13: The Terra chain halts twice. LUNA supply explodes from hundreds of millions toward about 6.9 trillion. Price collapses to fractions of a cent. Tens of billions wiped out in days.
Today (Nov 6, 2026): Old LUNA trades as $LUNC near $0.000041 on Binance. New Terra $LUNA sits near $0.038.
Lesson: a peg that only works while people believe it works is not a peg. Algorithmic stablecoins can look fine — until the death spiral starts.
$LUNA $LUNC #CryptoHistory #Terra #Stablecoins #CryptoLessons
NFA. Not financial advice.
Apr 5, 2022: $LUNA prints an all-time high near $119, with a market cap around $41B. Its sister coin UST, an algorithmic stablecoin meant to hold $1 without dollar reserves, peaks near an $18.7B market cap — briefly the third-largest stablecoin.
May 7–9, 2022: Large UST sells hit Curve's 3pool. The peg slips, then breaks. Luna Foundation Guard burns through tens of thousands of BTC trying to defend it. UST slides toward about $0.35. The mint/burn design starts minting huge amounts of LUNA to absorb UST redemptions — which dumps LUNA harder.
May 12–13: The Terra chain halts twice. LUNA supply explodes from hundreds of millions toward about 6.9 trillion. Price collapses to fractions of a cent. Tens of billions wiped out in days.
Today (Nov 6, 2026): Old LUNA trades as $LUNC near $0.000041 on Binance. New Terra $LUNA sits near $0.038.
Lesson: a peg that only works while people believe it works is not a peg. Algorithmic stablecoins can look fine — until the death spiral starts.
$LUNA $LUNC #CryptoHistory #Terra #Stablecoins #CryptoLessons
NFA. Not financial advice.
