Major cryptocurrencies such as Bitcoin, Ethereum or Solana are struggling to maintain their market dominance in the face of the big decline that they have been experiencing in recent months and which affects the volume of the global market.
When this was at stake, stablecoins like Terra survived until yesterday, when we experienced a resounding drop in this cryptocurrency. TerraUSD fell almost $0.99 over the weekend, dropping Terra’s sister token LUNA by over 95% in the last week.
UST is an algorithmic currency that uses a critical mint and burn system to adjust and stabilize its prices. Despite good forecasts, the price of UST collapsed due to selling pressure, and as prices continued to fall, panic intensified in the market. It was a complete domino effect.
According to reports, Terra’s total market capitalization has fallen below the $2 billion mark, making it the 64th largest cryptocurrency in the world. while in its glory days, the cryptocurrency was the 8th largest in the world.
To help eradicate ongoing complications, the founder of Terra, Do Kwon came up with a last-minute plan that could help restore TerraUSD and LUNA. its relevance to the market and put an end to this carnage.
kwon plans buy $10,000 million worth of bitcoin with the help of the non-profit Luna Foundation Guard.
These funds will be used to provide support in the event of another sharp drop in the value of Terra. The idea is for BTC to act as a reserve currency for Terra, similar to how central banks hold their fiat reserves.
However, the problem of trust in BTC lies in its volatility. and low hours you are currently living.
Founder of the Earth focuses on eventually allowing UST holders to exchange their tokens for bitcoin.. With all of this on the table, the situation seems to be quite tricky and it remains to be seen if they will finally manage to make a comeback or if we will see it eventually disappear (trust is completely lost, of course).
Source: Computer Hoy
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.
