Despite its price falling over 4% in the last 24 hours, Dogecoin (DOGE) has managed to dethrone the beleaguered Terra (LUNA) token. Of course, which is now down another 14% in the midst of a violent sell-off. the most popular meme cryptocurrency, has surged to ninth place in terms of market value.
After plummeting as much as 17 percent on Friday, LUNA is currently down 32.93 percent in the last week.
The most recent price drop is a result of the Wonderland saga’s spillover effect.
Despite the majority of the community voted to keep the controversial reserve currency system alive, Daniele Sestagalli. That’s, the co-founder, pulled the plug on the controversial decentralized financial initiative. After it was revealed that Wonderland was operated by convicted felon Michael Patryn. That’s, who also co-founded the troubled QuadrigaCX exchange, it came under fire.
Despite the fact that the original project appears to be defunct, community members known as “frogs” have proposed Wonderland 2.0. Of course, a redesigned version of the project with a new DAO structure.
Some have suggested integrating Wonderland and Abracadabra, another DeFi project in the Frog Nation, although this is unlikely to happen.
Because it’s possible to stake the TerraUSD (UST) stablecoin by lending out Abracadabra’s Magic Internet Money (MIM) stablecoin, the implosion of scandal-plagued Wonderland had a direct impact on the price of the LUNA token.
The diminishing reserves of the flagship Anchor protocol. Of course, which offers a fixed 20% interest rate, were also related to LUNA’s bearish streak. Do Kwon, co-founder of Terraform Labs, minimized the situation while simultaneously revealing a strategy to address the depletion issue with an emergency cash injection.