In trading on Thursday, May 26, Avalanche quotations fell by double digits after it had already lost 18% in just one week and 57% in all of May.
The most likely reason for this drop remains the ongoing uncertainty surrounding the Terra (LUNA) and TerraUSD (UST) projects. Avalanche is linked to these two projects, which are managed by Luna Foundation Guard (LFG), because LFG purchased nearly 2 million AVAX coins worth $100 million to keep them in reserve as supporting assets, The Ascent explains.
Emin Gan Sirer, CEO of Avalanche, acknowledged that his company, Ava Labs, lost $60 million because of the LUNA/UST collapse.
However, he says he supports the work being done by the Luna Foundation and believes AVAX stock is likely to have a stabilizing effect.