After a Strong Start, LUNA 2.0 Plummets by 80% on Its First Day of Trade

On May 28, the new LUNA 2.0 chain went online, and an airdrop of the new coin was sent to millions of wallets at the same time. The price of the chain initially started trading on ByBit at $0.30, but it quickly skyrocketed to $30 in the first 30 minutes of trading after the market opened. But, the peak was short-lived, as the price dropped to $5.30 within three hours.

As a direct result of the volatility that has been seen by the brand new virtual asset, Binance has decided to make the announcement that it will be listing it in the innovation zone. Furthermore, trading of the LUNA/USDT and LUNA/BUSD trading pairs will be postponed until May 31st at 6 a.m. UTC. Users have the ability to trade new assets that may have more volatility and offer a larger risk than other assets inside the Binance Innovation Zone, which is a specialized trading zone on the cryptocurrency exchange.

LUNA 2.0 hit a high of $18 on Gate.io, but the volatility on KuCoin was much lower, reaching a high of $7.4 only. It would seem that ByBit has had the most volatility as a consequence of the fact that it released the token before the majority of its other peers.

It should come as no surprise that there is a lot of pressure on sellers in the new chain since many traders are cashing out after completely losing faith in the Terra ecosystem as a result of the disastrous events that have occurred over the last few weeks. In addition, since the new chain does not support the UST stablecoin, the sole use that the LUNA token serves is in the administration of the network.

At the time of this writing, the price of LUNA 2.0 is $5.75, and the trading volume for the last 24 hours is $345,522,366. The first iteration of Terra, which was formerly known as LUNA, is now known as LUNC, and a new chain called Phoenix-1 was established and will use the Terra (LUNA) name.

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