Terra (LUNA) Loses its Position to Dogecoin (DOGE) as Slump Worsens

Although the turmoil that has encumbered the crypto market is beginning to loosen its vice-like grip, Terra (LUNA) has only continued to fall even further. Over the last 24 hours, Terra (LUNA) has dropped by 8%, bringing its weekly losses up to 35%.

The 24 hour price chart for Terra (LUNA). Source: Tradingview

Terra Falls Short

In the last month alone, LUNA has lost 45% of its value, dropping from highs of $93.79 down to its current price of $46.559, as of this writing.

The 30 day price chart for Terra (LUNA). Source: Tradingview

The woes of Terra’s losing streak were compounded as it was revealed that Wonderland’s treasurer ‘Sifu’ was in fact Michael Patryn, co-founder of the now defunct Canadian exchange ‘QuadrigaCX.’ Following the shocking news, LUNA’s value dropped by 17% over the weekend, as its partner, Abracadabra, is closely associated with Wonderland.

Dogecoin Overtakes Terra

While Terra’s (LUNA) position weakened significantly over the weekend, the number one meme coin, Dogecoin (DOGE), staged a recovery, superseding  Terra, taking their place in the rankings of crypto assets by market cap.

Terra’s losses saw its market cap hit an interday low of $17.4 billion, while Dogecoin’s recovery over the weekend helped its market cap open trade on January 31st at $18.92 billion. Terra’s price drop saw Dogecoin briefly claim the position of the 9th largest cryptocurrency ranked by market cap.

The 1-day market cap chart of Terra (LUNA)

The 1-day market cap chart of Dogecoin (DOGE)

On the Flipside

• Do Kwon of Terraform has announced plans to tackle the issue of the asset’s depleting value with an immediate cash injection.

Why You Should Care

Terra’s native token (LUNA) and its DeFi ecosystem are both in a difficult situation, and their future may well depend on the next steps made by Wonderland.