By CNBCTV18.com May 16, 2022 7:51:32 PM IST (Published)
"The Terra blockchain has resumed block production. Validators have decided to disable on-chain swaps, and IBC channels are now closed. Users are encouraged to bridge off-chain assets, such as bETH, to their native chains,” read the official update posted by the blockchain.
While the broader crypto market is still reeling from a difficult last few days, it's been a particularly rough week for the Terra blockchain. On May 8, 2022, Terra's native stablecoin, UST, briefly lost its peg with the US Dollar. While it did show signs of recovering from the de-peg, massive fear and uncertainty overcame investors, leading to a huge LUNA sell-off.
LUNA is the native cryptocurrency of the Terra blockchain. It is also used to maintain UST's 1:1 peg with the US dollar. A complex algorithm burns and mints LUNA to support UST's $1 valuation. However, with UST's brief de-peg, LUNA went into a rapid downward spiral, plummeting from $85 on 5 May to $0.02 on May 13.
Current price valuations:
As far as valuations are concerned, LUNA and UST are still in the dumps. At the time of writing, LUNA was trading at $0.0002283, down by 26 percent in the last 24 hours. The pain also continues for UST, trading at $0.164 and down 12 percent over the previous 24 hours, per data from CoinMarketCap.