Since hitting a record high of about $ 69,000 in November, Bitcoin, the world’s most popular cryptocurrency, has lost more than half of its value.
Two key currencies from Terra, the embattled cryptocurrency project, are currently in free decline.
UST, the so-called stablecoin, fell to 31 cents on Wednesday as it attempted to retain a $ 1 peg. According to CoinGecko statistics, the most recent transaction was less than 50 cents.
Sister Token Luna’s stock dropped by more than 80% to $ 4.83.
Stablecoin functions similarly to a crypto economy bank account, providing a healthy store of value to avoid unstable cryptocurrencies such as Bitcoin becoming famous-at least theoretically.
UST is a stablecoin that is known as a “algorithm.” To control supply and keep prices stable, use a sophisticated system of token generation and burning.
The price of UST has lately fallen due to the pressure of selling cryptocurrencies, producing even more market panic.
De Kwon, the coin’s founder, amassed billions of dollars in Bitcoin through his Luna Foundation Guard Fund to aid UST in times of distress.
The current fear is that the Luna Foundation Guard will dump those Bitcoins on the market, causing further sellouts.
Bitcoin is currently trading below $ 30,000. At the conclusion of Monday, the price was at its lowest level since July 2021.
The biggest digital currency in the world is currently slightly over that mark. Since achieving a record high of about $ 69,000 in November, it has dropped by roughly 56%.
To read our blog on “PayPal is actively looking and working into launching their own Stablecoin,” click here.
