How the cryptoasset markets have changed since Terra Crash

How the cryptoasset markets have changed since Terra Crash

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It was a month since Terra's algorithmic stable coin UST was decoupled from the US dollar. At that time, Terra's native token Luna and VAT were the ninth and tenth largest cryptocurrency after market capitalization- together worth $ 42 billion. Since then, both tokens have almost completely evaporated, which has led to a large concussion.

The dominance of Bitcoin increases and most cryptoassets are declining, but a stock market token has opposed the downward trend. While algorithmic stablecoins may not be completely dead, the downfall of VAT has dramatically changed the stablecoin landscape.

tether (USDT) is still the largest stablecoin (USD 72.5 billion compared to USD Coin53.9 billion US dollars), but the past month was the most important decline in its seven-year history. The offer from USDT has decreased by 13 % last month, which corresponds to an equivalent of almost $ 11 billion after large money dealers flocked in droves to redeem their tokens during the market chaos in May.

"The decline of the USD since the collapse of the VAT has reflected the relative market confidence in its issuer Tether (based on the British Virgin Islands) compared to USDC (issued by the USA Center Consortium, founded by Circle and Coinbase). Target = "_ blank" href = "https://info.genesistrading.com/hubfs/monshly-reviews/2022/may-202-monshly-rort.pdf"> Report .

Algorithmic stable coins such as Magic Internet Money (MIM) and Frax are significantly smaller. The overall offer of MIM has shrunk by 87 %, while Frax has decreased by 43 %-with a total of 3.6 billion US dollars that leave these two protocols.

The DAI from Makerdao is not strictly algorithmic, but has given up 18 % of its offer since the Ust-Pegung was lifted-although this is the case overlooked on-chain more than half. In fact, the USDC from Circle and the Binance bus (issued by Paxos) are the only top 12 stable coins that have not lost any market shares after the decline of VAT.

Obviously, the market participants now prefer token -proof token - just not Tether (USDT). USDC experienced an increase in its circulation by $ 5.4 billion, which corresponds to an increase of 11 %. Busd grew by $ 555 million, about 3 %.

But it seems that some still trust algorithmic stable coins. The decentralized USD (USDD) from Tron, which was introduced by blockchain founder Justin Sun just a few days before the collapse of VAT, attracted $ 491 million in the past month-an increase in the offer by

USDD owners were able to block their tokens all the month on the loan platform for double-digit returns, a view that has proven to be a blessing for the Trx price. The market value of USDD is now $ 703 million and is the tenth largest stable coin behind the Neutrino USD from Waves and in front of the gold-covered PAXG asset.

According to Genesis: "The jury is not sure whether the collapse of VAT will prove that algorithmic stable coins are a faulty concept or whether other design decisions could be successful in the future."

"The event has made it clear how important it is to understand nuances in this area and that not all stable coins are created equally."

Nevertheless, the collective offer of the 12 best stable coins at the time of the de-pegging of VAT-without VAT itself-has dropped by $ 9 billion.

Leo von Bitfinex, the most resistant cryptoasset

According to the price data checked by Blockworks, the Unus Sud Leo (Leo)-token from Bitfinex of the top 100 token (without stable coins and packaged tokens) was market value-the only token that gained value over the course of the month, even if by half a percent.

Bitfinex collected 1 billion USDT in 10 days with Leo's private token sale in May 2019. The idea of ​​replacing $ 850 million that was lost when the competitive external payment processor of the stock exchange, Crypto Corp, was searched by the authorities.

Bitfinex buys back Leo and burns to compensate investors who have contributed to sale, while normal Bitfinex users receive discounts on fees if they keep Leo on their accounts. The company undertook to finally burn all of a billion leo-token, of which it has already destroyed around 6.5 % of the supply.

crypto stock exchange tickets exceeded a large part of the market in May. Many have similar combustion mechanisms to Leos to reward holders. Kucoins Native Token KCS was the third best top 100 crypto-asset to Terra and fell only by 3.5 %. But the FTT of FTX and BNB Binance were not so hot - both broke up by 20 %.

The price of Leo doubled at the beginning of this year when the US authorities announced that they had confiscated Bitcoin worth 3.5 billion US dollars in 2016. Bitfinex has announced that it will use at least 80 % of the regained net for the buyback and burning of Leo-token within 18 months of the recovery date.

A Bitfinex spokesman said that Blockworks Leo's performance should be considered as a measure of the trust of its customers in the platform.

"We have also started to see what a correlation between Leo's performance and the prospects could be that Bitfinex receives the stolen Bitcoin that was confiscated by the US authorities at the beginning of this year," they said.

Other top 100 tokens that cut relatively well after Terra are TRX (minus 3.5 %) and Monero (minus 9 %). Bitcoin came fifth and fell by 14 % from almost $ 35,500 to $ 30,400. BTC is currently tied to a range without a clear momentum.

Ether, on the other hand, dropped by 30 % in the course of the month - approximately the average for the top 100. Bitcoin's dominance rose by almost 15 % and now represents almost half of the market for digital assets, while the dominance from ether decreased by almost 9 % to almost 18 %. .

On Wednesday, the second largest cryptoasset after market capitalization took an important step towards his planned merger when his ropsten test network was successfully switched to Proof-of-Stake.

As for the losers: Apart from Luna, the native digital asset for the Anchor Anchor, which was operated by Terra, was most affected with a decrease of 91 %. Token for the Convex Finance credit platform and the data protection blockchain Secret Network broke up by 66 % and 62 %, while the Move-to-Earn project Stepn broke up 60 %.

The alternative networks Oasis and Avalanche both lost by 55 %, the Defi-Governance token Yearn lost 54 % of its value, while the Metaverse project Aspecoin and the layer-one-assets Near, Mina and Solana were all halved in the price.

While the cryptoma markets fell in the run-up to the de-pegging of VAT in April, all digital assets have been worth 20 % less since the stable coin has broken, which corresponds to a loss of value of $ 336.6 billion.

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The contribution How Cryptoasset Markets Have Changed Since Terra Crash is not a financial advice.