Luna falls 100% as supply increases to trillions due to the rapid burning of UST and minting of Luna. Billions of tokens were getting added to the supply every minute at one point before the blockchain was halted. Right now, there are 6.87 Trillion Luna tokens and 11.28 B UST. In all certainty, we can say that the project is dead, and they cannot recover from this mess.
*TERRA LUNA NOW 0.0001 LESS THAN A CENT, DOWN 100%#TERRALUNA pic.twitter.com/isjp8zyUg7
— Investing.com (@Investingcom) May 13, 2022
Luna is less than 1 cent now but can still go lower
Before the UST depeg, the price of Luna was near $60, and there was 18.6 billion UST. Right now, the UST supply is at 11.9 billion, which means around 6.7 billion UST were burned, and Luna was minted, and this was enough to push the price to less than 1 cent. Considering there is a lot of burning to happen, Luna’s price can go even lower.
The supply rise has been so drastic that even if you try top arbitrage UST and Luna by swapping, by the time you do it, it could have fallen much lower. Profits could be far-fetched as they could even lead to losses. And with time, the supply increase will only get faster as more Luna would need to be minted for $1 UST. If we consider the price of $0.0001 in the chart shared by Investing.com, then 10,000 Luna tokens need to be minted to burn just 1 UST.
Don’t buy Luna with the hope of recovery
There is no point in investing in Luna right now. The project is at a point where it’s getting delisted from exchanges. Binance has already removed it from futures, and others will do the same as well. If the price of Luna had fallen without the supply increase, there would have been a hope that UST getting pegged to USD again would solve it, but it’s far beyond that now.
There are many on Twitter and Reddit sharing that they have lost their life’s savings in Luna. Some of them bought around $90-$100 when everything was going well, but a lot of people who lost their money bought the dip. Basically, it’s the dip you shouldn’t buy.
What are your thoughts as Luna falls 100% as supply increases to trillions? And did you buy the dip in the hope of recovery? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Terra project is officially dead as blockchain gets halted.