This week in coins: Virtually every top 100 cryptocurrency falls as LUNA bottoms

This week in coins: Virtually every top 100 cryptocurrency falls as LUNA bottoms

This week in coins. Illustration by Mitchell Preffer for Decrypt

A glimpse of the decrypt Homepage this week would have been enough to see that the global crypto industry is in a panic.

Krypto’s craziest week i saw some 200 billion dollars of total market cap evaporated between Wednesday and Thursday while industry leaders Bitcoin and Ethereum plummeted to lows Not seen since 2020by employing institutional whales like Elon Musk and Michael Saylor underwater again. In addition, according to Huobi analysts, we haven’t reached the bottom yet.

Terra’s Leading Cryptocurrency LUNA – Ranked Top 10 in the World Last Week –dropped to zero. LUNA posted an all-time high of $118.19 just last month and is now trading for a fraction of a penny.

LUNA’s demise was fueled the collapse by Terra’s other leading coin, the greenback-pegged UST, which bottomed at 13 cents on Friday, according to CoinMarketCap. As of this writing, it’s slightly up to 19 cents today.

The numbers of the week

It is now the sixth week in a row of the market decline as virtually every top 100 cryptocurrency by market cap starts the weekend with double-digit percentage losses. Bitcoin is down 20% from last week to trade at $28,809 and Ethereum is down 27% at $1,968.

Among the week’s biggest losers: Cosmos down 43% to $9.68, Algorand down 43% to $0.42, NEAR Protocol down 43% to $6.05, Polygon down 40% to $0.62 $ and Avalanche fell 48% to $29.83.

The only top 100 coin to gain this week was Maker, the 42nd largest cryptocurrency by market cap at $1.4 billion, up 7.1% to $1,419.

The news of the week

Aside from the Terra meltdown, the news cycle continued similarly to the past few months, albeit with increased talk of stablecoin regulation.

Instagram announced its test on Monday NFT connectivity with a handful of American collectors and creators. The pilot will allow testers to link crypto wallets to their accounts and view verified collectibles. Parent company Meta also said Facebook NFT support is expected soon.

Economist and former no-coiner Nouriel Roubini has started work on an inflation-proof dollar-pegged stablecoin, according to a Bloomberg report On Monday. Roubini’s Atlas Capital has hired Andreessen Horowitz-backed Web3 developer Mysten Labs to develop technologies for the United Sovereign Governance Gold Optimized DollarThe project is a total about-face for Roubini, who delivered a 37-page speech in 2018 calling crypto the “mother of all scams.”

Also on Monday, Salvadoran dictator Nayyib Bukele bought 500 BTC for around $15.3 million. This brought the total number of El Salvador’s bitcoin stash to 2,300, or around $66 million — currently $6.25 million (9%) below its value decrypt reported the purchase. Overall is Bukele $37 million in the hole today.

On Tuesday, Treasury Secretary Janet Yellen highlighted the collapse of Terra as an example of why stablecoins must be settled promptly. On Thursday, Yellen again mentioned crypto, this time to say that the industry’s $1.23 trillion market cap poses no systemic risk to the US financial system, and by extension, neither does stablecoins.but they grow very fast and pose the same risks that we have known from bank runs for centuries.”

Securities and Exchange Commission Chairman Gary Gensler sharply criticized on cryptocurrency exchanges and stablecoins during an interview with Bloomberg on Tuesday. Gensler took issue with the fact that many large exchanges operate custody, market-making, and trading services without separating them as traditional exchanges require, and accused them of “often trading against their clients because they are trading against their clients.” set market brands”.

On the same day, the Federal Ministry of Finance (BMF) published the Federal Ministry of Finance first guide on the income tax treatment of cryptocurrencies. This was announced by Parliamentary State Secretary Katja Hessel a statement that the sale of cryptocurrencies like Bitcoin or ether is now tax-free for private individuals after one year of possession of the assets.

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