A ghost in the blockchain? Or a poltergeist playing tricks? 25 May began with TerraUSD [UST] seeing a daily rally of more than 400%, but then experienced a crash that dragged it back down to below $0.1. So here’s your news update in case you were sleeping when the price spiked.
A glitch in the matrix?
Early on 25 May, traders might have been shocked to see UST surge up like a tidal wave to briefly touch highs slightly over $0.3 before collapsing back to its press time trading price of $0.06939. This surge took place twice in total before prices slipped back to familiar lows.
So, did traders who bought UST at dirt cheap prices reap the rewards? Let’s take a look at the metrics.
Source: Santiment
Indeed we can see that volumes increased dramatically as UST rose in price. The likeliest cause is that either active traders or programmed bots may have made the most of the opportunity to sell their UST.
However, the more suspicious amongst you might be wondering if whales had something to do with it all. Well, the data available to confirm this is still incoming, but for now, a ‘no’ looks more likely. In fact, whale transactions have been dropping since UST came loose from its peg.
Source: Santiment
That being said, UST supply on exchanges can clue us in as to how investors may have reacted. Overall, less than one million UST returned to exchanges as the price rose. This was a very slight increase in exchange supply, meaning that most didn’t capitalize on the chance to sell their UST.
Source: Santiment
Just Do Kwon it
The ex-stablecoin might be struggling to get back to $0.1, leave alone $1, but that hasn’t stopped Terra founder Do Kwon from inviting protocols and projects to build on Terra 2.0. One such group of builders – Phoenix Finance – claimed it would be the first DEX on the platform.
In the meantime, Kwon was having fun with Twitter users who begged him to burn LUNA in order to raise UST’s prices again. The Terra founder provided an address that critics could use to destroy their own LUNA.
Adding to that, the founder was trying to make the hashtag “#TerraIsMoreThanUST” into a trend.
To clarify, as I’ve noted multiple times i dont think sending tokens to this address to burn tokens is a good idea – nothing happens except that you lose your tokens
Want there to be no confusion whatsoever https://t.co/GrzG9cclAr
— Do Kwon 🌕 (@stablekwon) May 23, 2022
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