The cumulative crypto market capitalization hovered lower near $1.43 trillion, gaining 1% over the previous 24 hours. On the other side, the total crypto trading volume declined by 14% to $156.55 billion.
Top large-cap cryptos rebounded today after the massive sell-offs that dominated the previous sessions. Nevertheless, the upswings stayed limited, indicating weak sentiments within the marketplace.
The crypto spectrum still reflects aftershocks of geopolitical tension and worldwide economic turmoil. Feeble trading volumes, hawkish central banks, and escalating inflation hurt the financial space.
Excluding the dollar-tied Tether and Terra, top cryptos saw some upward actions. Shiba Inu gained 9%, whereas Solana saw a 4% price surge. Binance Coin, Ripple’s XRP, and Avalanche gained 3% each.
The cumulative crypto market value remained lower at around $1.43 trillion, gaining 1% over the past day. On the other side, the overall crypto trading volume noted a nearly 14% drop to $156.56 billion.
WazirX Trade Desk stated that the only reason Terra wants to purchase $10 billion in BTC as a UST reserve to guarantee constant stablecoin value. It has accumulated nearly $3 billion worth of Bitcoin. However, the latest BTC crash towards $29K saw the stablecoin losing its dollar peg, and UST dropped towards $0.65 before recovering to $.95.
BuyUcoin’s Tech View
LUNA saw its prices crashing beneath the $30 mark, about 75% lower from the April 2022 all-time peak at $119.18. Terra’s stablecoin, UST, plummeted to explore the all-time lows at $0.6841. Since LUNA interconnects with UST, losing the dollar tie means a grim impact on LUNA prices. Remember, each traded UST involves burning LUNA and vice versa.
UST destabilization triggered panic selling in large tokens like Bitcoin and Ethereum, increasing overall market volatility. The latest crisis in UST unveiled massive loopholes by the algo-backed stablecoin industry. And that might need a public address to regain investors’ confidence.
LUNA’s recovery will rely on corrective procedures that its parent company/LFG takes. Remember, LFG build a massive BTC reserve amid several large-scale Bitcoin acquisitions.
What are your views about UST and LUNA’s current crisis? You can comment below.