Not a fun time for $LUNA holders right now. I've been giving it some thought lately.
Nothing has changed in terms of fundamentals, in fact things getting better.
So what’s happening?

In March, hype popped around $LUNA and the launch of Anchor. Speculative came and went leading to this drop. Smart ones exited above 20$+ while the rest got into over leveraged and activated the liquidation spiral. Not to mention loan liquidations on anchor.

As of now, lenders aren’t really attracted. We’re in a bull market, demand for stablecoins is low. On top of that, crypto space has been traumatized with smart contract bugs/hacks so the lack of insurance against it stops people from lending big sums into Anchor.

Every person that I talked to about Anchor is really interested but they told me the same thing. They’re not willing a chunk of their networth if there is no insurance which is totally logical. This should be solved with Ozone.

Also, the drying up of liquidity happened as we were expecting, except we were only looking at the positive side. If supply drying up causes price to increase greatly when buyers pops up, it also causes the price to decrease with the same magnitude when sellers enter the dance.

Scarcity only works if there is real demand for an asset. TFL is working hard on many fronts to deliver quality products so that the average joe will be able to benefit from TeFi which will prop up demand for $LUNA.

But this takes time. Real adoption is here, it was just outpaced by speculation, as it happens in all markets. It’s normal to be frustrated especially in such a crazy bull market.
#Terra is the best DeFi ecosystem out there. If it doesn’t succeed, none will. I’m bullish.

The biggest threat imo is that the DXY turns bullish and crushes bitcoin and would send all alts that dumped vs $BTC straight to hell. We'll see how that goes but right now the dollar seems to be failing to hold and $BTC is very bullish.