LUNA hits a new low as Kwon pursues plan to restore UST peg

On Thursday Morning the price of LUNA, the native token of the Terra blockchain, hits a new market low.

The cryptocurrency dipped below $0.30 for the first time early on May 12, hitting a low point of $0.21 as of press time, based on Binance data.

Binance currently facilitates more trading in LUNA than any other exchange, according to CoinGecko.

The price of LUNA first fell below $1 on Wednesday, down from more than $65 at the start of the week.

UST’s price currently stands around $0.60, according to Binance, but it had dropped as low as $0.02250.

Bitcoin's price has also fallen sharply this week.

The cryptocurrency is trading at roughly $26,660, having hit a local low of $26,607 on Coinbase, per TradingView data.

Kwon endorsed a community proposal to increase the amount of LUNA being minted per day by four times to help UST holders cash out, easing selling pressure.

The proposal acknowledged that burning billions of LUNA would dilute the currency significantly.

“Nevertheless, there are no limit in LUNA supply, this market mechanism will actually work to bring stable UST and stable LUNA price (although likely at lower price point for LUNA),” the proposal stated.