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LUNA Drops 13.02% Over the Past Week as Recovery Efforts Continue After Collapse

LUNA Drops 13.02% Over the Past Week as Recovery Efforts Continue After Collapse

Bitget-RWA2025/11/06 07:26
By:Bitget-RWA

- LUNA dropped 13.02% in 7 days as of Nov 6, 2025, amid ongoing post-2022 collapse recovery efforts. - Terra 2.0 rebranded from algorithmic stablecoin model to governance-driven DeFi and payment solutions. - Financial analysts monitor LUNA's volatility as a case study for blockchain governance and ecosystem resilience. - The token's 80% annual price drop highlights risks in algorithmic models and decentralized finance adaptation.

As of NOV 6 2025,

increased by 0.74% over the past day, reaching $0.0822. Over the last week, LUNA declined by 13.02%, saw an 11.99% decrease in the past month, and has fallen 80.18% over the previous year.

LUNA, which serves as the primary token for the

blockchain, remains under close observation by financial experts, even after experiencing a steep 80% drop year-over-year and ongoing price swings. The token continues to be analyzed for its influence on blockchain advancements and its strategies for recovery following its collapse.

Initially introduced within the

network, LUNA was essential in keeping TerraUSD (UST), an algorithmic stablecoin, pegged to the US dollar through a dual-token mint-and-burn process. This mechanism was designed to stabilize UST’s value without traditional asset backing. However, in May 2022, the system broke down when UST lost its peg, causing LUNA’s price to plummet.

In response, Terra 2.0 was introduced—a revamped blockchain that abandoned the algorithmic stablecoin approach in favor of a governance-focused ecosystem. The updated LUNA now supports staking and protocol governance, but it no longer functions as a stabilizer for stablecoins. The project’s emphasis has shifted to decentralized finance (DeFi), payment infrastructure, and community-driven growth.

Even with these foundational changes, LUNA’s trading patterns continue to draw attention from market analysts. The 13.02% decline over the week ending NOV 6 2025 highlights persistent market volatility, though daily trading has remained relatively steady. Observers are watching for signs of a sustained rebound, especially as the DeFi sector and cross-border payment initiatives within the network expand.

Terra’s evolution has broader significance beyond its native asset. The platform has become a proving ground for blockchain governance, token economics, and the durability of decentralized finance. Analysts use Terra as a reference point to assess the effectiveness of algorithmic models, governance frameworks, and strategies for ecosystem growth.

Although the network’s move from a stablecoin-based system to one centered on decentralized applications (DApps) has not erased the memory of its 2022 collapse, it has made Terra an important case study. Changes in LUNA’s price and governance are closely monitored as reflections of user confidence, market outlook, and the network’s ability to adapt technologically.

Backtest Hypothesis

To assess how the Terra ecosystem has recovered since its crisis, a backtesting strategy can be employed to review LUNA’s historical performance during significant market downturns. Typically, an event is defined as any day when the closing price drops by at least 10% compared to the previous day. By pinpointing all such occurrences from 2022 to 2025, one can track the token’s recovery patterns and volatility.

This event-based analysis can be extended to LUNA and other digital assets for comparison. It provides a detailed look at how LUNA reacted to abrupt market declines, the duration of its recovery, and whether its post-crisis behavior diverges from trends seen before 2022. The backtest also offers insights into the effects of governance reforms and ecosystem changes introduced with Terra 2.0.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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