Earlier today Binance made an announcement on Twitter for suspending the LUNA and UST withdrawals due to network congestion. The cryptocurrency trading platform halted the trading and withdrawals for LUNA and UST stablecoins at 2:20 am UTC on 10th May. He assured that the suspension is for a temporary period and will resume once the network is stable.
Accordingly, the exchange recognized a decrease in pending withdrawals as soon as the suspension was imposed. The Terra Ecosystem is well known for its stablecoin implementation in the crypto industry and currently going through some market uncertainties.
Despite accumulating Bitcoins for billion of values to make the UST strong, the Luna Foundation Guard had to shed $1.5 billion worth of Bitcoin for a price dip. The step was taken to make the UST peg strong against the U.S. dollar which went down by $0.71. Post the selling of Bitcoin, the UST managed to get nearer the dollar value at $0.91 lately. On the other hand, LUNA saw a declined value of $33 almost 40% lower in the past 24 hours due to a major sell-off.
Moreover, according to the blockchain analytics and crypto analyzers, Terra’s UST and LUNA prices crashed after someone cast out $285 million worth of UST tokens on Curve and Binance this weekend. The Terra UST withdrawal was initiated from the decentralized projects Curve Finance and Anchor built on Terra Blockchain.
Although the current crypto market and investors are suffering from a downside they still that the situation revives by itself in some time. The related industry like Metaverse, and NFT marketplaces have taken a backseat and are looking for ways to re-establish the thriving market. It will be in the best interest of all the investors, creators, and multiple institutions that they stay strong and use the time in analyzing better strategies.