During the week, the cryptocurrency LUNA’s exchange rate dropped from $80 to $0.00001. The reason may lie in the very algorithm of UST return by investors, writes Bits.media.

When attempting to return USTs, they are burned, and in return LUNA coins are issued in an amount equal in value to the burned stablecoins. The lower the LUNA rate, the more coins will be issued. Against the background of UST’s decoupling from the dollar exchange rate, many investors tried to return their steiblecoins, which caused an avalanche-like increase in the number of LUNA.

According to the Terrascope service, on May 9, the number of coins was 386 million, yesterday it reached 176 billion, and at the moment it exceeds 6.5 trillion. Therefore, such a drop in the LUNA rate is not surprising.