UST lost its US dollar peg, falling to as low as $0.98
Terra’s native stablecoin TerraUSD (UST) lost its peg to the US dollar this weekend. Falling as low as $0.98 after a whale dumped around $285 million worth of UST on Curve and Binance. While disturbance was kept minimal, UST briefly saw its dollar peg deteriorate up to 0.8% causing LUNA to lose around 20% of its value between May 7 and May 8, hitting $61, its worst level in three months.
Summary
- Whale sold around $285 million of UST
- Increased supply of UST led to LUNA losing 20% of its value in 24 hours
- UST went as low as $0.98
- Speculation about an intentional withdraw to crash LUNA
UST began losing its peg to the US dollar at around 9 PM EST on Saturday, May 7. At the same time, BTC and ETH had been dropping since Thursday, May 5. Fear washed over the crypto space after US Fed Chairman Jerome Powell’s FOMC press conference on May 4, where he announced a 0.5% increase in interest rates.
The downwards…
