LUNA Down 0.27% Amid Declining Stablecoin Market Cap

On NOV 25 2025, LUNA dropped by 0.27% within 24 hours to reach $0.0733. Over the past week, the token gained 1.24%, but has declined by 21.41% in the last 30 days and by 82.3% over the past 12 months. These figures highlight a persistent bearish trend in the token’s broader performance, despite a recent short-term rebound.

Stablecoin Market Continues to Contract

The broader stablecoin market has also seen a significant decline, according to recent data. As of NOV 24 2025, the total market cap of stablecoins fell to $3028.37 billion, reflecting a 0.33% decrease in the past week. This represents the largest monthly drop since the collapse of LUNA in May 2022. The decline of over $6 billion from the market's previous peak underscores a broader shift in investor sentiment toward stablecoins and the underlying risks associated with algorithmic or less collateralized forms.

The current market conditions suggest that concerns over stablecoin pegs, regulatory scrutiny, and past volatility are continuing to impact investor confidence.

Broader Market Implications

While LUNA remains a key player in the broader crypto market, the token’s performance has been influenced by the overall health of the stablecoin sector. The continued contraction of the stablecoin market cap reflects broader macroeconomic pressures, shifting capital allocations, and lingering regulatory uncertainty.

The drop in stablecoin value also highlights a systemic shift in how stablecoins are viewed—particularly in the wake of past failures. Investors are increasingly favoring stablecoins with full collateralization and proven liquidity, which may impact the demand for tokens like LUNA that are tied to more complex or volatile mechanisms.

Analysts Note Persistent Downtrend

Analysts project that LUNA will continue to face downward pressure unless the broader stablecoin market stabilizes and confidence in algorithmic models is reestablished. However, the recent week-over-week increase suggests a potential short-term floor may be forming, even as long-term trends remain bearish.

With the token down over 82% compared to one year ago, LUNA’s future remains closely tied to the evolving landscape of stablecoin infrastructure and the regulatory environment shaping crypto markets globally.