The popular stablecoin is depreciating rapidly as it slips away from its dollar price peg.
The central theses
- TerraUSD’s price has fallen below $0.95, an amount five cents below the coin’s intended price fix of $1.00.
- The stablecoin’s price started falling over the weekend and then quickly fell below 99.5 cents as of this morning.
- Although $1.5 billion is being used to resolve the situation, this measure seems to have had little effect.
The stablecoin is now valued at close to $0.95 as the market value of the asset continues to decline.
TerraUSD falls five cents
Terra’s UST stablecoin is down 5% from its peak and is trading around $0.95.
Different market aggregators report slightly different values for the asset. CoinGecko suggests that TerraUSD’s price is 94.6 cents, while CoinMarketCap suggests a slightly higher value of 95.1 cents.
In any case, the value of TerraUSD was even lower a few hours ago. The coin was valued at between 93.2 and 94.2 cents at its low point.
About CoingeckoDespite TerraUSD’s modest recovery over the past few hours, the stablecoin is still not close to reaching its $1.00 peg. Since 6:00 a.m. today it has been below the 99.5 cent mark.
It’s unclear whether prices will continue to fall, stabilize or recover – although a downward spiral could be disastrous for the asset.
funds are used
This morning, Terra’s Luna Foundation Guard (LFG) announced that it would provide a $1.5 billion loan to help TerraUSD regain its intended parity with the dollar.
In the sixteen hours since that announcement, it suggested that reprisal “takes time… but it’s recovering.”
In the same update, Terra attributed the steady price decline to a “behind-the-scenes liquidity brawl.” It added that it was “fighting back” and “more updates coming in”.
It then claimed that TerraUSD is supported by on-chain activity and user demand, adding that the coin’s true on-chain peg has not deviated.
Do Kwon, founder and CEO of Terra, also tweeted that he was “putting more [capital]It’s unclear if Kwon plans to bring in his assets, if LFG will commit more capital, or if he confirms that $1.5 billion was provided earlier.
TerraUSD’s problems are reflected in widespread withdrawals DeFi-Being due to platforms that trade stablecoins, such as B. Curve. Although the majority of the coin’s losses occurred today, the price started falling.
Source: Crypto News Deutsch