With a 24-hour trading volume of $9.7 billion, the current Terra price is $29.66 a share. According to Coinmarketcap statistics at the time of writing, the value of luna withdrawal suspended binance has dropped by 53 percent since its inception. Terra's stablecoin UST fell below $0.65 yesterday, signaling a possible collapse of the largest algorithmic stablecoin on the market, according to CoinDesk. Terra is the largest algorithmic stablecoin on the market.
Terra depletes its Bitcoin reserves to maintain the peg.
The Luna Foundation Guard (LFG), the entity in charge of preserving the stablecoin's peg, depleted its $1.5 billion Bitcoin reserve by purchasing an additional $850 million in Bitcoin to keep the peg in place, according to a report. Because of "network slowness and congestion," withdrawals of Binance suspended withdrawals, and UST tokens have been suspended on Binance, the world's largest cryptocurrency exchange. The following is what the corporation stated in a statement:
We will resume withdrawals for these tokens after the network has been deemed reliable and the number of pending withdrawals has been lowered, which we expect to be soon. Traders are unable to sell their UST. Traders observed on Tuesday morning that the binance luna withdrawal was suspended, and UST order books seemed to be frozen, with no orders being processed at all. According to their observations, Twitter users point out that the maximum price that UST has been able to fetch is 70 cents for 1 UST.
Terra's official Twitter account shared the following:
If you are using the public infrastructure, please refrain from spamming it at this time since we are experiencing naturally high levels of transaction activity. Please be cautious of how our public infrastructure is being used and how binance not allowing withdrawal.
The LFG is depleting its Bitcoin reserves.
Currently, LFG has $171.4 million in USD and $86.82 million in UST in reserves. This is down 85% resp. 41% from Monday, May 9. They also have $84.5 million in AVAX. CoinList and Kraken have also suspended binance withdrawal issues at this time. According to CoinDesk, FTX is currently still allowing UST withdrawals.
