Terra (LUNA) is gradually rising from the dust after its market capitalization and price tanked over a week ago.
The cryptocurrency, which saw its price fall to a low of $0.00000099 on May 13, 2022, has picked up momentum once again as the Terra team makes necessary preparations to make investors whole again.
As the price of LUNA tanked to a low of $0.00000099 on May 13, 2022, its market capitalization also slumped below $60 million, with investors converting the cryptocurrency to stablecoins.
Interestingly, the cryptocurrency’s market capitalization has recorded a massive surge above $1 billion as investors flock to purchase the cryptocurrency to become beneficiaries of the upcoming LUNA airdrop.
Meanwhile, as the date for LUNA airdrops draws closer, investors have embarked on a widespread purchase of the cryptocurrency, thus pushing its price and market capitalization to soar tremendously.
In the past 48 hours, LUNA has gone up over 100% in price, from a low of $0.0001037 to a high of $0.0002159. At press time, the price has fallen slightly to $0.000193. That surge in price helped the market cap as at press time, LUNA’s market capitalization currently sits at $1.2 billion, according to data on cryptocurrency aggregator platform Coingecko.
LUNA Price Surges
The rapid increase of LUNA’s market valuation has also contributed positively to the price of the asset class. Following the surge of LUNA’s market cap, the token price has skyrocketed from its May 13 low of $0.0000009 to $0.000193, which suggests that LUNA has only three zeros to eliminate before it reaches $1.
While it is possible that LUNA could surge to $1 before the upcoming Terra 2.0 goes live on May 27, 2022, its circulating supply is not helping matters.
After LUNA fell from glory, many investors withdrew the token from different pools and dumped them in the market, which further contributed to its price crash.
In just two weeks, LUNA’s circulating supply surged from 300 million tokens to nearly 7 trillion. There are currently 6.53 trillion LUNA tokens in circulation at press time, which raised further doubt about the possibility that LUNA would hit $1 before the new Terra chain is born.
UST’s Market Cap Stagnant
Meanwhile, Terra’s flagship stablecoin TerraUSD (UST) struggles to regain its peg to the U.S. dollar. The stablecoin is trading at around $0.06 across exchanges with a market capitalization of $746 million.
UST is down 2.6% in the last 24 hours, with very meager activity recorded for the stablecoin in the past day.
The stablecoin has not recorded a significant surge in market capitalization like LUNA because the team is more focused on compensating the latter’s investors.
As reported, most Terra investors favor creating a new chain and LUNA tokens without the algorithmic stable coin.
However, the proposal to burn UST failed to execute due to technical issues, as the team made another effort at making the stable coin valuable once again.
