There appeared to be panic in cryptocurrency markets on the night of May 11 as Terra’s Blockchain protocol failed to stabilize the bleeding of its crypto-facilities.
Data from Cointelegraph Markets Pro and TradingView show that the Terra signal (LUNA) and the coin stable TerraUSD (UST) suffered major losses during the day.
Suspicious new “historical record” for bitcoin
After a sale, which some claimed was “coordinated” to destroy Terra’s ecosystem, the UST lost its pin to the US dollar.
Attempts to consolidate parity with LUNA and bitcoin (BTC) reserves failed, and as market uncertainty hit, UST and LUNA fell to unimaginable levels just days earlier.
Approaching… stay strong, insane
—Do Kwon (@stablekwon) May 10, 2022
We are getting closer… Be strong, insane. – Do Kwon (@stablekwon) May 10, 2022
Co-founder Do Kwon said there was a “turnaround plan” to be released, data is still scarce at the time of writing.
Rumors circulating online indicate that other large cryptocurrency companies may be willing to give funds to support parity.
On May 11, the UST was trading at just $ 0.27, after a brief dive to a low of $ 0.25, or 75% below dollar parity. The LUNA / USD pair was at $ 6.00, down over 90% in May alone.
Another effect of the current turmoil was in the form of BTC / UST reaching crazy levels of almost $ 140,000 on the Binance major exchange, which suspended withdrawals from LUNA and UST on 9 May.
Bitcoin is doing very well
Among the analysts, there is a reaction of a mixture of calmness and anxiety about the market recovery.
Read also: Ether Value Rises Against Bitcoin Despite Crypto Market Race – Will ETH / BTC Pair Win 50% by June?
Attention also turned to the largest USD stable, Tether (USDT); taking into account that even Tether ‘s chief technology officer, Paolo Ardoino, seemed to be surprised at recent events.
– Paolo Ardoino (@paoloardoino) May 11, 2022
Despite the potential selling pressure on bitcoin itself, the largest cryptocurrency avoided an additional dive under $ 30,000 at the time of writing this report.
“I think bitcoin has stood out very well in the context of the Luna saga with its mandatory BTC sale. There is still a lot of uncertainty in the market, but at the moment the $ 30,000 level is well-positioned against bitcoin, ”Philip Swift, creator of analytics platform LookIntoBitcoin, told Cointelegraph in private comments.
We are seeing a set of metrics on LookIntoBitcoin that shows BTC approaching key “value” levels where bitcoin has historically accumulated strong hands at value prices. There is also ample evidence that holders are not intimidated by this short – term volatility. »
BTC / USD, like other risky assets, faced another source of volatility on the day as US CPI data was due to be released.
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