Avalanche drops 30% on fears Terra’s LFG will dump AVAX next

2022.05.11 19:13

Avalanche drops 30% on fears Terra’s LFG will dump AVAX next

Avalanche (AVAX) is paying the price for being one of the collateral assets that maintain Terra‘s native stablecoin TerraUSD’s (UST) peg with the U.S. dollar.

AVAX’s price dropped about 30% to reach $32.50 on May 11, its lowest level since September 2021. Its massive intraday decline coincided with UST dropping to as low as 23 cents, which effectively dented its stablecoin status among traders and investors alike.

Source