According to a tweet from Terraform Labs, the company behind the Terra ecosystem which includes the LUNA governance token and several algorithmic stablecoins, the price of LUNA fell too low to "prevent governance attacks," citing LUNA inflation as one factor. LUNA fell in price from nearly $120 in early April to between 1 and 2 cents on Thursday.

Terraform said the network's validators "will coordinate" to restart the network shortly.

The UST stablecoin has also pushed to record lows having given up all its stabilizing gains...

Tether - a collateral-back stablecoin, as opposed to TerraUSD's algo-backed model - has recovered its dollar-peg...

Bitcoin is now up over $4500 from the deep lows overnight, reaching session highs shortly after news of the Terra blockchain halt...

Perhaps as Terra is 'halted' (and Tether has stabilized) the pressure on BTC-selling-to-support is over.

The market capitalization of the world's cryptocurrencies crashed over $200 billion overnight, back below $1.5 trillion - its lowest since July 2021 and almost 50% down from its $3 trillion highs in Nov 2021...