The cryptocurrency industry is seeing a robust recovery today following the massive plunge in price that was fueled by the crises rocking Terra (LUNA) and TerraUSD (UST). At the time of writing, the combined crypto market capitalization has added 10.70% over the past 24 hours.
As usual, the recovery is being led by Bitcoin (BTC) which is now trading above $30,000 after printing a 9.50% gain over the past 24 hours. The premier digital currency is changing hands at $30,283.23, very good recovery after trading as low as $27,608.85 yesterday. The crypto market recovery also trickled down the long list of altcoins including Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Cardano (ADA) to mention a few.
Only Terra (LUNA) has slumped to a level that its recovery is now largely being doubted. At the time of writing, the cryptocurrency was trading at $0.00005108 as its circulating supply has topped 6.5 trillion. According to popular reports, Terraform Labs has been looking for support from investors to help bail out its ailing UST stablecoin which has failed to maintain the expected 1:1 peg with the US Dollar.
Terra Taps GAM Holdings Support
Many believe the long-term recovery of the Crypto market is hinged on how well LUNA is able to recover. This recovery process may further be expedited with the latest support from GAM Holdings, a leading asset management firm that has pledged the sum of $3 billion to help the ailing Terra ecosystem.
“Our interest in supporting UST reflects our interest in supporting a vibrant, innovative, and resilient crypto market,” notes GAM CEO Peter Sanderson. “We firmly believe in Terra’s ecosystem. Just as importantly, we believe in UST’s algorithmic approach to valuation. When investors have proper incentives, they naturally trade in ways that maintain price stability. When black swan events impact markets, opportunities blossom. We see opportunity in UST’s recent activity, and continue to see promise in Terra’s broader strategy.”
No one understands how the recovery process will go or whether Do Kwon’s plans to burn 370 million UST coins are still in effect, but the GAM support is sure to provide some needed succor.