LUNA Drops 0.27% as Stablecoin Market Cap Continues to Fall
- LUNA fell 0.27% in 24 hours to $0.0733, showing a 82.3% annual decline amid broader bearish trends. - Stablecoin market cap dropped to $3028.37B (-0.33% weekly), marking its largest monthly decline since 2022's LUNA collapse. - Analysts link LUNA's struggles to waning investor trust in algorithmic stablecoins and heightened regulatory scrutiny. - Market shifts favor fully collateralized stablecoins, pressuring complex mechanisms like LUNA's hybrid model.
As of NOV 25 2025,
Stablecoin Market Keeps Shrinking
Recent reports show that the stablecoin sector at large has experienced a notable contraction. By NOV 24 2025, the total stablecoin market capitalization had decreased to $3028.37 billion, marking a 0.33% drop in the past week. This is the steepest monthly decline since LUNA’s crash in May 2022. The market’s loss of more than $6 billion from its recent high points to a broader change in investor attitudes toward stablecoins, especially those relying on algorithms or limited collateral.
Current trends suggest that ongoing worries about stablecoin stability, increased regulatory oversight, and previous market turbulence are still weighing on investor trust.
Wider Market Consequences
Although LUNA continues to be a significant asset in the crypto space, its trajectory is being shaped by the overall condition of the stablecoin market. The persistent reduction in stablecoin market value reflects larger economic challenges, changing investment strategies, and unresolved regulatory questions.
The decline in stablecoin prices also signals a fundamental change in how these assets are perceived, especially after previous collapses. There is a growing preference among investors for stablecoins that are fully backed and have established liquidity, which could affect the appeal of tokens like LUNA that depend on more intricate or unstable systems.
Experts Observe Ongoing Downward Momentum
Market experts anticipate that LUNA will likely remain under selling pressure unless the stablecoin sector recovers and trust in algorithmic models is restored. Still, the recent week’s gains may indicate the formation of a short-term support level, even as the overall outlook stays negative.
With the token having lost more than 82% of its value compared to a year ago, LUNA’s prospects are now closely linked to the development of stablecoin infrastructure and the global regulatory framework that governs the cryptocurrency market.
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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