The native token of the Terra (CRYPTO: LUNA) blockchain crashed 56% over 24 hours as its stablecoin, TerraUSD (CRYPTO: UST), lost its peg for the second time in 48 hours.

What Happened: According to data from Benzinga Pro, LUNA fell from an intra-day high of $64.62 to an intra-day low of $28.03. LUNA has lost more than 65% of its value since the weekend.

Why It Matters: UST’s token mechanics are set up so that traders can redeem $1 of LUNA for $1 of UST, ensuring that the stablecoin is constantly pegged to the dollar at all times.

LUNA’s sharp decline has caused its market cap to fall under that of UST, with traders unable to redeem UST for LUNA in its previous 1:1 parity.

See Also: Why Terra Is Planning To Add $10B In Bitcoin Reserves

Today, on-chain data shows that Terra’s $1.3 billion in Bitcoin reserves have been drained entirely.

Despite the injection of capital, UST has failed to reclaim its peg to the U.S. dollar and the protocol’s ecosystem has remained in jeopardy.

“While buys and sells of UST are not meaningfully directional now, we felt it was valuable to have capital ready to be deployed in the current market,” said Terra founder Do Kwon.

“As markets recover, we plan to have the loan redeemed to us in BTC, increasing the size of our total reserves.”