Crypto’s meltdown of madness

Even by the white-knuckle standards of the volatile cryptocurrency universe, it’s been a standout week. All cryptocurrencies have been reduced to levels not seen since early 2020, with one being nearly entirely wiped clean of all worth. A look at what’s transpired

of cryptoasset market value lost in the past month, according to Coinmarketcap

of wealth lost in just past week

Bitcoin, the world’s largest cryptocurrency, hit a low of $25,401.05 on Thursday, its lowest level since Dec 28, 2020. It was last down 25.7% in just the past eight sessions

ETHER, the world's 2nd-largest cryptocurrency, fell to its lowest since June 2021, sinking as low as $1,700, against a November high of $4,800

Stablecoins are cryptocurrencies the value of which is pegged to that of an asset – a currency, or commodity like gold. The basic premise behind Stablecoins is to offer stability in a universe where even the most popular cryptocurrencies like Bitcoin face intense volatility. But this idea of “pegged” stability is what has caused this week’s mayhem

A popular algorithmic stablecoin called Terrausd (UST) crashed from its US Dollar peg this week when the complex mechanism designed to ensure the link suddenly turned against it. It last traded near 10 cents, sucking even the biggest digital assets into a vortex of panicked selling.

As the chaos surrounding UST deepened, the Terra blockchain that underpins it stopped processing transactions. This ended up being the death knell for its sister cryptocurrency — the Terra Luna

FALL SINCE MAY

Its market worth shrunk from $41 billion to $603 million, wiping off $40.4 billion worth of wealth