Luna's value has dropped to 99% over the night as cryptocurrencies have plummeted

Luna's value has dropped to 99% over the night as cryptocurrencies have plummeted ...

Cryptocurrency markets are in the midst of a meltdown, with analysts warning of a ripple effect from Luna''s apparent failure and the stablecoin terraUSD.

Forbes reports that the meltdown has reduced nearly a trillion dollars from the wider cryptocurrency market, reducing total market capitalization to its lowest level since late 2020. Luna, a cryptocurrency used to help terraUSD, lost almost 99% of its value in the past five days, losing a total of $25 billion.

Luna is a popular cryptocurrency in the cryptocurrency markets. TerraUSD is an algorithmic "stablecoin," which is designed to closely peg its own value to the US dollar. To do this, it used a computer algorithm to buy and sell Luna, a cryptocurrency it holds in reserve, to stabilize the value of terraUSD. However, when Luna crashed, so did terraUSD, which is no longer valued anywhere near parity with the US dollar.

According to Forbes, analysts, this trend is causing a ripple effect in the global cryptocurrency market. Bitcoin is currently trading at $29,000, down nearly 18% over the past five days. Other cryptocurrencies such as Ethereium, Solana, Cardano, and others are also up from 25 to 33%.

This crash underscores the volatility of the cryptocurrency market and follows a similar event in another blockchain-based technology. According to the Wall Street Journal, NFT sales are down 92 percent as investors hold onto their assets amid public backlash. In addition, the completely unregulated market is expected to suffer a fresh scandal every week as NFT pushers scam investors in get-rich quick programs.

The decline of cryptocurrency prices implies that video card prices appear to be increasing. More gamers will finally be able to afford a laptop upgrade as demand for GPUs plummets.