Dies war die ereignisreichste Woche seit vielen Monaten, aber leider war das Endergebnis, dass 500 Milliarden Dollar von der gesamten Marktkapitalisierung der Cryptowährung ausgelöscht wurden. Das Ökosystem von Terra stand dabei an vorderster Front, also packen wir es an.
On May 9, UST lost – the algorithmic one stablecoin of the Terra ecosystem – its bond. It dropped to around $0.95, but no one was prepared for what happened next. The following day, UST continued to fall in value as the Luna Foundation Guard continued to deploy capital in a vain attempt to defend the tie. Everything collapsed shortly after – on May 11, UST was trading at a discount of almost 80%.
This in turn created a massive one due to the workings of the algorithm behind the stablecoin arbitrage-Possibility. As long as UST is trading below $1, users can burn it for $1 worth of LUNA – a means of keeping the cryptocurrency below market prices indefinitely until the peg is restored. This led to an endless loop of printing LUNA and diluting the existing supply to a point where LUNA is essentially $0 a few days later.
Billions have been wiped from the market while exchanges have largely delisted trading pairs associated with both cryptocurrencies. The Luna Foundation Guard previously had as much as $1.5 billion BTC bought for their reserves – a quantity that is now completely used up.
This dragged the entire market down. The result – $500 billion wiped from total capitalization. Bitcoin’s price fell below $26,000 on some exchanges – levels not seen since December 2020.
Many altcoins followed suit and all saw massive declines. Solana fell below $40, ETH under $2,000 and so on. At the time of writing, the market is recovering but the overall sentiment remains very scary.
With hope that the worst is over, it will be exciting to see what the next seven days have in store. Once again – there are no dull days in crypto.
Market Cap: $1,750 billion | 24-hour band: $125 billion | BTC dominance: 39.3%
Bitcoin: $36,150 (-9%) | ETH: $2,699 (-7.9%) | ADA: $0.78 (-6.8%)
This week’s crypto headlines you can’t miss
Here’s what happened to LUNA and why the price may continue to plummet. UST lost its attachment and LUNA came crashing in. The latter lost essentially 100% of its value as the algorithm’s arbitrage printed it forever. At the time of writing, many exchanges have also delisted related trading pairs.
Bitcoin Coinbase Premium falls to 3-year low. The bitcoin premium on Coinbase has fallen to a low not seen in three years. This could be an indication that institutional sellers are selling their holdings on the platform.
Germany: No taxes on selling BTC and ETH if held for more than a year. Germany’s Treasury Ministry said individuals don’t have to pay taxes when selling BTC or ETH if they hold it for more than a year. This is a remarkable development in the positive direction.
FASB Votes to Review Accounting Rules for Crypto on Balance Sheets: Saylor. The Financial Accounting Standards Board (FASB) has voted to revise accounting rules for exchange-traded digital assets in the United States. This could have significant implications for companies seeking regulatory clarity.
Australia’s lagged crypto ETFs launch this week Australia’s first cryptocurrency exchange-traded funds began trading after a two-week delay. However, due to unfavorable market conditions, they have so far generated negligible volumes.
Meta’s Instagram testing NFTsas Facebook plans to follow suit soon, says Zuckerburg. Instagram will see the adoption of NFTs in the future. Users can view them in a physical space. This was revealed by Meta’s CEO Mark Zuckerberg.
This week we have chart analysis of Ethereum, RippleCardano, Solana and Shiba Inu – click here for the full price analysis.
Source: Crypto News Deutsch