Crypto Week at a Glance: The volatility of crypto and the de-pegging of a stablecoin

economictimes.indiatimes.com:

By Analytics Team, Giottus Crypto Exchange Bitcoin (BTC)’s volatility was on full display this week – from the highs of $36,000, BTC briefly went below $27,000 before regaining the $30,000 level and losing it eventually. BTC is trading near $29,000 today. The story of the week though belongs to TerraUSD (UST) and Terra (LUNA). Both were amongst the top 10 cryptocurrencies at the start of the week. UST’s de-pegging led to a capitulation in LUNA as it dropped more than 99 per cent in value and fell outside the top 200 list.

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The cataclysmic set of events started as Terra’s LUNA and its algorithmic stablecoin Terra USD suffered a major crash on May 10 and UST lost its $1 peg. The system, designed to algorithmically maintain its peg to the US Dollar, eventually failed to do so and caused a systematic devaluing of UST. To compensate for this, LUNA tokens began to be minted at an unusually faster rate increasing its supply exponentially. UST is trading below $0.2 today. Terra founder Do Kwon has released a short-term roadmap to try and revive the ecosystem. Meanwhile, portfolios of most crypto investors who entered the ecosystem post 2021 are in the red. They would need to ride this phase out over the next 2-3 months before they can witness a recovery in crypto assets. The news from the world of crypto, though, continue to hold promise. We enlist some below.Australia’s first ETFs go liveAfter an initial delay, Australia’s first three cryptocurrency exchange-traded funds (ETFs), hosted on the CBOE