$ 87,501.0

BTC

-0.49 %

$ 2,026.98

ETH

$ 2,026.98

-1.97 %

$ 0.7394

ADA

$ 0.7394

-1.90 %

$ 630.29

BNB

$ 630.29

-0.32 %

$ 138.83

SOL

$ 138.83

-3.65 %

May 12, 2022

by Kay Adeoti

Crypto Carnage: Could TRX Be Next After LUNA?

The whole crypto market is now experiencing a severe carnage, with certain cryptocurrencies bearing the brunt of the pain more than others. Terra (LUNA) is one of these cryptocurrencies, which lost more than 70% of its market value in less than 24 hours. The Terra blockchain native stablecoin, UST, a programmable stablecoin, has also taken a hit as a consequence of the significant price decrease, losing its peg to the US dollar twice in less than 48 hours.

With the damage done and Terra trying all it can to recover, it seems that the selloff movement is now focusing its attention on TRON as the next victim. According to live trading activity on Binance, the financing rate for shorting TRON (TRX) has already surpassed the 100 percent annual percentage rate (APR), and many traders are now eager to short. As of the time of this writing, TRX has lost more than 18% of its value in the previous 24 hours.

Fighting the crash

To avoid finding itself in the same situation as Terra (LUNA), the Tron DAO Reserve is currently investing 2 billion USD to combat those who are shorting the cryptocurrency. The TRON DAO Reserve, which has a total reserve of $10 and serves as a lender of last resort, is responsible for stabilizing the exchange prices of centralized and decentralized stablecoins on the TRON blockchain.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Tron Binance TRX LUNA Terra

Crypto Carnage: Could TRX Be Next After LUNA?

Kay Adeoti

Kay is a content specialist who has a particular interest in the finance and cryptocurrency industries, among others. He is a frequent contributor to a number of finance and cryptocurrency-related websites, where he offers readers with informative and educational articles on the cryptocurrency and financial markets. Aside from that, he is an avid supporter of blockchain technology.

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