While LUNA has more than doubled in price, and the stablecoin of the UST ecosystem is trying to restore its peg to the dollar, the Binance exchange is suspending the withdrawal of both assets.
On the morning of May 10, the Binance trading platform announced the suspension of the withdrawal of two key tokens of the Terra ecosystem - LUNA and TerraUSD (UST) - which fell into the turbulence zone. In its blog, the company attributes the decision to network congestion and a long queue of pending withdrawal transactions.
Binance explains how soon Terra LUNA and TerraUSD withdrawals will resume:
Binance will reopen withdrawals for these tokens once we believe the network is stable and the volume of pending withdrawals has decreased. We will not notify users in future announcements.
Monday, May 9th proved to be a volatile day for the Terra ecosystem. According to Binance, UST quotes dropped to $0.6 against the usual $1, later recovering. Meanwhile, data from aggregator CoinGecko showed that the price of LUNA, the key token of the Terra ecosystem, which under normal market conditions can be burned in exchange for UST, fell from $62 to $28 in a day.
The broader crypto market is also experiencing difficulties. The Bitcoin rate dropped below $30,000 at the moment, but is now approaching $32,000.
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