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Usha Yadav
May 13, 2022
by Usha Yadav

Luna Supply had Risen to 6.5 Trillion Coins, Before Terra's Last Suspension

Terra's Last Suspension
By the time the Terra blockchain was suspended for the second time to save the failing ecosystem, the circulating supply of Luna (LUNA) had risen to be more than 6.5 trillion. According to Terra Analytics, the supply of Luna was only around 340,000 for the last two weeks – up until just three days ago. That was until Monday, when TerraUSD (UST) lost its dollar peg, sending Luna, a linked token supposed to prop up UST's value, into a downward spiral.

Luna sales were expected to help UST maintain parity with the US dollar, according to the algorithmic stablecoin's design. The mechanism put a lot of downward pressure on Luna once UST lost its peg and investors rushed to cash out en masse. Worse, the more Luna's price dropped the more downward pressure. This set off a vicious cycle in which Luna's price plummeted, and supply grew exponentially.

The network issued 40 million Luna tokens on Tuesday. Luna's circulation supply rose on Wednesday, reaching 1.5 billion tokens.

Despite the chain being paused for a short time on Thursday, this achieved 176 billion tokens. It has now reached 6.5 trillion and is still increasing if the chain has not been terminated for the second time.

Developers working on Terra eventually called it a day. They chose to freeze the blockchain early Friday morning until they figured out a method to resurrect the project after the supply increased roughly 17,000 times in only three days.

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Luna Supply had Risen to 6.5 Trillion Coins, Before Terra's Last Suspension
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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