- Luna, the existing crypto for the Terra network besides its stablecoin TerraUSD, recently subsided to the $0 mark.
- The overall market, including Bitcoin (BTC) and Ethereum (ETH) also seen a plunge in their price amid the bearish trends.
- At the time of writing, the traditional cryptocurrency BTC is trading at $30,579 and is up by around 7% in the last twenty-four hours.
The entire cryptocurrency market has seen bearish trends of late. The digital assets witnessed falls recently. The crowned cryptocurrency is currently trading around $30,000. Whereas the stablecoin section also witnessed changes; for instance, TerraUSD (UST) almost plunged to $0.
And the market sentiments seem to be quite low as the stablecoin meant to be pegged to Dollar collapsed.
Bitcoin price is trying to get up from its lowest level, and the reason behind its fall is said to be TerraUSD, a so-called stablecoin, folds through markets. BTC got up from the lowest level of $26,700 amid the bear market crisis in the whole cryptocurrency market, proving its dominance all around.
At the time of writing, the traditional cryptocurrency is trading at $30,579 with a market cap of $582,193,832,222. But it still remains highly low from the levels of $40,000.
TerraUSD (UST) broke its one-to-one Dollar peg, as its mechanism to stay pegged utilizing another digital token failed due to panic selling.
And at the time of writing, the Luna coin is trading at $0.00002716 with a market cap of $177,356,226 and is down by around 99% in the last twenty-four hours.
According to an analysis by Morgan Stanley, over half of all the bitcoin and ether traded on exchanges are versus a stablecoin, with USDT taking the largest share. According to Tether, it has necessary assets in cash, treasuries, corporate bonds, and other monetary products.
But if the traders continue to sell, Tether might witness further tests. And analysts are also concerned that the stress can spill over into money markets if the pressure prompts more liquidation.
Ethereum, the second-largest crypto by market cap, is currently trading at $2,119 with a market cap of $255,905,083,902. It also plunged to around $1,7000 on Thursday.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.