Value locked on Anchor, Terra’s largest DeFi protocol, dropped some $11 billion in the past two days.
Terra’s LUNA continued its third consecutive day of slide as the token fell 96% in the past 24 hours to reach price levels previously seen in August 2021.
Anchor, the decentralized finance (DeFi) platform that provides yields on UST deposits, saw total value locked (TVL) fall by $11 billion in the past two days. The drop came as TVL peaked at $17 billion just a week ago.
LUNA fell to almost $1.3 at the time of writing on Wednesday as the depegging of TerraUSD (UST) stablecoin with U.S. dollars contributed to a waning fundamental sentiment among traders for LUNA.
Selling pressure on LUNA came as its parent foundation issued 46 million tokens in the past day to maintain UST’s peg with the U.S. dollar, data show.
The price action represented one of the biggest drops for a major cryptocurrency. Data shows LUNA prices have dropped 90% in the past week and 7% in the past hour alone. The tokens are now down 92% since lifetime highs of $119 in April 2022, just more than a month ago.