Tuesday, December 5, 2023
  • Login
EthozEdge
No Result
View All Result
  • Home
  • ETHO News
  • EVM News
    • Avalanche Network
    • Ethereum
    • Fantom Opera Chain
    • Harmony Chain
    • Huobi Eco Chain
    • Polygon Chain
  • Crypto News
    • Altcoin News
    • Bitcoin
    • Blockchain
    • Crypto Exchanges
    • Crypto Mining
    • Crypto Regulation News
    • DeFi
    • NFT
    • Metaverse
    • Scam News
    • Web 3.0
Cryptocurrency Marketcap
  • Home
  • ETHO News
  • EVM News
    • Avalanche Network
    • Ethereum
    • Fantom Opera Chain
    • Harmony Chain
    • Huobi Eco Chain
    • Polygon Chain
  • Crypto News
    • Altcoin News
    • Bitcoin
    • Blockchain
    • Crypto Exchanges
    • Crypto Mining
    • Crypto Regulation News
    • DeFi
    • NFT
    • Metaverse
    • Scam News
    • Web 3.0
No Result
View All Result
EthozEdge
No Result
View All Result
Home EVM News Avalanche Network

UST Stablecoin Declines as Crypto Market Plunges

by ethozedge
May 10, 2022
in Avalanche Network
Reading Time: 2 mins read
A A
0
Share on FacebookShare on Twitter


Terra’s stablecoin UST drops to its all-time low as the crypto market takes a swing lately. The coin, which was supposed to be close to $1, dropped to the $0.70 level, despite the large sum funneled in from the reserves. Experts believe that the fall should be analyzed with this ongoing crypto winter rather than the stablecoin’s ability to hold on in the short term.

Stablecoins are usually the hedging vehicles in the crypto market as there is a fear of volition. Commonly, the stablecoins act as a bridge between DeFi and TradFi and are responsible for significant liquidity from institutional investments. Popular stablecoins like USDT and USDC are backed by cash and the reserves in the bank.

Unlike these stablecoins, Terra’s UST keeps the entirety of its operations with DeFi and keeps its value close to $1 through algorithmic connections with the network’s native token LUNA. The value is kept stable with a specialized mining process of LUNA which requires burning UST, and this algorithm involves several other steps to keep the value as stable and close to $1 as possible.

The price falls of UST are designed to stabilize itself by going along with the normal proceedings of the free market. When a buyer gets UST for $0.99 and sells for $1, the profit theoretically stabilizes the coin price. However, the theoretical success seems not to have worked in reality as the token explored new depths in price fall this weekend.

The fall was impactful for the stablecoin as the crypto market could not hold very well as the winter hit. As per the reports, the crypto market cap fell from $1.8 trillion to $1.4 trillion over the last five days. Following this, the UST price on Coinbase fell as low as $0.65.

The Luna Foundation Guard has been working on a fallback strategy for the last few months if the algorithm fails to hold up the value. As of May 3, the foundation purchased Bitcoin, Avalanche, UST, and LUNA worth approximately $4 billion for the reserves. Within a week since then, the foundation had to face the very situation it anticipated for months now.

The foundation voted for a $750 million loan just as the price reached $0.985 for proactive defense against further decline. However, it has not made much difference, and UST fell 6% in just an hour last night. The LFG is planning to increase the loan amount to $1.5 billion in a desperate need to hold steady. Furthermore, experts are still unsure whether it is the result of an innate fault or the recent downswing of the crypto market. 



Source link

Tags: bitcoin newsCryptocrypto analysiscrypto newsDeclinesEthoz EdgeLatest bitcoin newslatest crypto newsMarketplungesstablecoinUST
Share76Tweet47

Related Posts

Bitcoin (BTC) Stopped at $42K, Stacks (STX) Skyrockets 33% Daily (Market Watch)

by ethozedge
December 5, 2023
0

Bitcoin’s price went on another offensive hours ago and touched $42,400 for the first time in over a year and...

Platypus Finance Hackers Cleared of All Charges on ‘Ethical Hacker’ Defense

by ethozedge
December 4, 2023
0

The individuals accused of orchestrating the $8.5 million hack of Platypus Finance, an Automated Market Maker (AMM) protocol on Avalanche...

November’s CryptoSlate Alpha snapshot: Navigating crypto’s regulatory maze and economic uncertainties

by ethozedge
December 1, 2023
0

Welcome to the CryptoSlate Alpha November Snapshot, a collection of the month’s most pivotal research, insights, and market reports. This...

KyberSwap hacker demands full control over the DEX at ‘fair valuation’

by ethozedge
November 30, 2023
0

The hacker responsible for the $48 million KyberSwap heist has escalated their demands, now seeking complete executive control over the...

XRP, BNB Among Altcoins Losing Correlation With Bitcoin: Data

by ethozedge
November 28, 2023
0

Data shows altcoins have been losing correlation with Bitcoin recently, and among them, XRP and BNB have seen particularly pronounced...

Load More
  • Trending
  • Comments
  • Latest

🔴 Bank of America Bets on Crypto

April 11, 2022

Pomelo Launches Family Credit Cards to Combine Credit and International Money Transfer

August 16, 2022

How to Add Polygon (MATIC) to Your MetaMask Wallet

May 28, 2022

The Sandbox Price Prediction 2022-2030: HODL or DUMP?

May 25, 2022

Successful Beta Service launch of SOMESING, ‘My Hand-Carry Studio Karaoke App’

0

At least 54 apes were stolen in BAYC Instagram hack

0

Binance Introduces New Crypto Card for Ukrainian Refugees

0

55,000 Meta Cricket League NFTs sell out in nine minutes

0

Bitcoin (BTC) Stopped at $42K, Stacks (STX) Skyrockets 33% Daily (Market Watch)

December 5, 2023

1.7 Million Addresses Hit 2-Year High

December 5, 2023

Societe Generale Issues First Digital Green Token on Ethereum Mainnet Network

December 5, 2023

More than 200 works belonging to Lisa Schiff could be sold by Phillips to help repay former adviser’s creditors

December 5, 2023
Facebook Twitter LinkedIn Tumblr RSS
EthozEdge

Find the latest Bitcoin, Ethereum, blockchain, crypto, Business, Fintech News, interviews, and price analysis at EthozEdge

CATEGORIES

  • Altcoin News
  • Avalanche Network
  • Binance Smart Chain
  • Bitcoin
  • Blockchain
  • Crypto Exchanges
  • Crypto Mining
  • Crypto Regulation News
  • DeFi
  • Ethereum
  • EVM News
  • Fantom Opera Chain
  • Harmony Chain
  • Huobi Eco Chain
  • Metaverse
  • NFT
  • Polygon Chain
  • Scam News
  • Web 3.0
  • XDai Chain

SITE MAP

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - EthozEdge.
EthozEdge The Crypto is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • ETHO News
  • EVM News
    • Avalanche Network
    • Ethereum
    • Fantom Opera Chain
    • Harmony Chain
    • Huobi Eco Chain
    • Polygon Chain
  • Crypto News
    • Altcoin News
    • Bitcoin
    • Blockchain
    • Crypto Exchanges
    • Crypto Mining
    • Crypto Regulation News
    • DeFi
    • NFT
    • Metaverse
    • Scam News
    • Web 3.0

Copyright © 2022 - EthozEdge.
EthozEdge The Crypto is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • JDBJDB(JDB)$0.021575-0.61%
  • bitcoinBitcoin(BTC)$41,630.000.31%
  • ethereumEthereum(ETH)$2,198.18-1.26%
  • USDEXUSDEX(USDEX)$1.07-0.47%
  • tetherTether(USDT)$1.00-0.18%
  • binancecoinBNB(BNB)$229.140.21%
  • rippleXRP(XRP)$0.61-1.20%
  • solanaSolana(SOL)$60.10-2.15%
  • usd-coinUSDC(USDC)$1.000.00%
  • staked-etherLido Staked Ether(STETH)$2,200.39-1.16%
  • cardanoCardano(ADA)$0.398540-0.32%
  • dogecoinDogecoin(DOGE)$0.0884211.29%
  • tronTRON(TRX)$0.102749-0.56%
  • chainlinkChainlink(LINK)$15.30-2.01%
  • ToncoinToncoin(TON)$2.361.06%
  • avalanche-2Avalanche(AVAX)$21.98-0.22%
  • matic-networkPolygon(MATIC)$0.79-1.18%
  • polkadotPolkadot(DOT)$5.53-0.42%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$41,605.000.36%
  • Wrapped stETHWrapped stETH(WSTETH)$1,865.020.37%
  • shiba-inuShiba Inu(SHIB)$0.0000090.58%
  • daiDai(DAI)$1.00-0.22%
  • litecoinLitecoin(LTC)$71.74-1.69%
  • bitcoin-cashBitcoin Cash(BCH)$239.19-2.16%
  • uniswapUniswap(UNI)$6.010.03%
  • leo-tokenLEO Token(LEO)$3.71-0.35%
  • okbOKB(OKB)$56.92-3.24%
  • stellarStellar(XLM)$0.120210-1.05%
  • moneroMonero(XMR)$168.38-0.67%
  • KaspaKaspa(KAS)$0.138649-3.12%
  • true-usdTrueUSD(TUSD)$1.00-0.16%
  • cosmosCosmos Hub(ATOM)$9.540.76%
  • ethereum-classicEthereum Classic(ETC)$19.45-1.51%
  • crypto-com-chainCronos(CRO)$0.094314-0.34%
  • Aerarium FiAerarium Fi(AERA)$7.15-13.10%
  • internet-computerInternet Computer(ICP)$4.95-1.05%
  • BSCEXBSCEX(BSCX)$237.310.49%
  • nearNEAR Protocol(NEAR)$2.184.72%
  • filecoinFilecoin(FIL)$4.58-0.56%
  • hedera-hashgraphHedera(HBAR)$0.0640173.02%
  • lido-daoLido DAO(LDO)$2.32-2.14%
  • AptosAptos(APT)$7.391.88%
  • BittensorBittensor(TAO)$329.73-1.95%
  • thorchainTHORChain(RUNE)$6.26-6.12%
  • immutable-xImmutable(IMX)$1.442.37%
  • MantleMantle(MNT)$0.56-1.09%
  • vechainVeChain(VET)$0.0237431.50%
  • binance-usdBUSD(BUSD)$1.000.12%
  • blockstackStacks(STX)$1.1235.73%
  • optimismOptimism(OP)$1.72-1.27%
  • quant-networkQuant(QNT)$100.580.55%
  • GGTKNGGTKN(GGTKN)$0.1121310.76%
  • the-graphThe Graph(GRT)$0.1522262.98%
  • terra-lunaTerra Luna Classic(LUNC)$0.0002431.88%
  • aaveAave(AAVE)$96.11-3.21%
  • ArbitrumArbitrum(ARB)$1.06-1.45%
  • injective-protocolInjective(INJ)$16.01-4.40%
  • makerMaker(MKR)$1,450.21-2.17%
  • render-tokenRender(RNDR)$3.55-6.00%
  • Rocket Pool ETHRocket Pool ETH(RETH)$2,422.66-0.73%
  • elrond-erd-2MultiversX(EGLD)$50.221.33%
  • CelestiaCelestia(TIA)$8.53-2.76%
  • algorandAlgorand(ALGO)$0.1508210.63%
  • flowFlow(FLOW)$0.8017.06%
  • havvenSynthetix Network(SNX)$3.55-3.82%
  • theta-tokenTheta Network(THETA)$1.115.21%
  • First Digital USDFirst Digital USD(FDUSD)$1.00-0.13%
  • ORDIORDI(ORDI)$49.1021.33%
  • EdgecoinEdgecoin(EDGT)$1.00-0.03%
  • bitcoin-cash-svBitcoin SV(BSV)$49.87-2.62%
  • iotaIOTA(IOTA)$0.320010-2.99%
  • the-sandboxThe Sandbox(SAND)$0.4415804.71%
  • axie-infinityAxie Infinity(AXS)$6.955.30%
  • kucoin-sharesKuCoin(KCS)$9.4815.85%
  • fantomFantom(FTM)$0.3171833.07%
  • galaGALA(GALA)$0.03007312.14%
  • decentralandDecentraland(MANA)$0.4612283.49%
  • WEMIXWEMIX(WEMIX)$2.57-6.00%
  • BitDAOBitDAO(BIT)$0.592.96%
  • neoNEO(NEO)$11.86-0.61%
  • eosEOS(EOS)$0.721.65%
  • kavaKava(KAVA)$0.801.77%
  • WhiteBIT CoinWhiteBIT Coin(WBT)$5.480.53%
  • tezosTezos(XTZ)$0.860.87%
  • conflux-tokenConflux(CFX)$0.21076326.95%
  • mina-protocolMina Protocol(MINA)$0.731.61%
  • Bitget TokenBitget Token(BGB)$0.52-1.53%
  • usddUSDD(USDD)$0.98-0.29%
  • terra-luna-2Terra(LUNA)$1.1812.80%
  • xdce-crowd-saleXDC Network(XDC)$0.049736-3.01%
  • fraxFrax(FRAX)$1.000.07%
  • klay-tokenKlaytn(KLAY)$0.2018221.19%
  • Frax EtherFrax Ether(FRXETH)$2,206.85-1.48%
  • illuviumIlluvium(ILV)$107.07-1.62%
  • frax-shareFrax Share(FXS)$8.640.26%
  • Tokenize XchangeTokenize Xchange(TKX)$8.170.04%
  • SuiSui(SUI)$0.635.42%
  • CheeleeCheelee(CHEEL)$12.060.17%
  • sapphireSapphire(SAPP)$0.7035.32%
  • SeiSei(SEI)$0.2911423.64%
  • Pyth NetworkPyth Network(PYTH)$0.4193280.45%
  • CloutContractsCloutContracts(CCS)$52.461,000.00%
  • rocket-poolRocket Pool(RPL)$30.590.22%
  • BlurBlur(BLUR)$0.542.06%
  • pancakeswap-tokenPancakeSwap(CAKE)$2.34-0.98%
  • apecoinApeCoin(APE)$1.611.88%
  • ecasheCash(XEC)$0.000030-0.41%
  • PepePepe(PEPE)$0.0000018.35%
  • gatechain-tokenGate(GT)$4.20-2.74%
  • BeamBeam(BEAM)$0.0122282.15%
  • dydxdYdX(ETHDYDX)$3.04-5.26%
  • fetch-aiFetch.ai(FET)$0.52-2.15%
  • curve-dao-tokenCurve DAO(CRV)$0.58-0.75%
  • chilizChiliz(CHZ)$0.0770810.90%
  • arweaveArweave(AR)$8.183.42%
  • radixRadix(XRD)$0.050736-0.80%
  • compound-ethercETH(CETH)$44.21-1.15%
  • gnosisGnosis(GNO)$198.60-4.29%
  • marumaruNFTmarumaruNFT(MARU)$0.25242622.62%
  • casper-networkCasper Network(CSPR)$0.04511629.01%
  • gasGas(GAS)$7.78-0.76%
  • terrausdTerraClassicUSD(USTC)$0.055475-4.16%
  • Staked Frax EtherStaked Frax Ether(SFRXETH)$2,347.74-1.43%
  • tether-goldTether Gold(XAUT)$2,022.33-2.18%
  • trust-wallet-tokenTrust Wallet(TWT)$1.190.78%
  • cWBTCcWBTC(CWBTC)$835.980.27%
  • Rollbit CoinRollbit Coin(RLB)$0.155307-5.92%
  • pax-goldPAX Gold(PAXG)$2,011.22-1.96%
  • bittorrentBitTorrent(BTT)$0.000000-2.00%
  • binaryxBinaryX(BNX)$165.94-5.94%
  • gmxGMX(GMX)$49.57-4.66%
  • Coinbase Wrapped Staked ETHCoinbase Wrapped Staked ETH(CBETH)$2,324.51-1.11%
  • nexoNEXO(NEXO)$0.811.41%
  • osmosisOsmosis(OSMO)$0.71-3.10%
  • Halo CoinHalo Coin(HALO)$0.057352-0.04%
  • paxos-standardPax Dollar(USDP)$1.000.11%
  • zcashZcash(ZEC)$30.63-1.28%
  • convex-crvConvex CRV(CVXCRV)$1.47183.77%
  • huobi-tokenHuobi(HT)$2.76-0.98%
  • aelfaelf(ELF)$0.599.13%
  • woo-networkWOO Network(WOO)$0.2304750.34%
  • oasis-networkOasis Network(ROSE)$0.081159-3.63%
  • FlareFlare(FLR)$0.0142702.23%
  • stepnSTEPN(GMT)$0.2926178.62%
  • KujiraKujira(KUJI)$3.27-5.80%
  • zilliqaZilliqa(ZIL)$0.0228894.27%
  • heliumHelium(HNT)$2.75-4.34%
  • akash-networkAkash Network(AKT)$1.76-3.62%
  • iotexIoTeX(IOTX)$0.04121443.62%
  • 1inch1inch(1INCH)$0.3638832.06%
  • BonkBonk(BONK)$0.0000069.42%
  • AstarAstar(ASTR)$0.0707362.71%
  • FLOKIFLOKI(FLOKI)$0.0000385.92%
  • msolMarinade staked SOL(MSOL)$69.19-2.48%
  • singularitynetSingularityNET(AGIX)$0.303017-1.50%
  • huobi-btcHuobi BTC(HBTC)$41,070.00-2.24%
  • dashDash(DASH)$31.780.12%
  • merit-circleMerit Circle(MC)$0.831.59%
  • basic-attention-tokenBasic Attention(BAT)$0.2401884.46%
  • DogechainDogechain(DC)$0.001787-24.98%
  • MemecoinMemecoin(MEME)$0.04089637.76%
  • RoninRonin(RON)$1.297.60%
  • 0x0x Protocol(ZRX)$0.4172034.32%
  • nemNEM(XEM)$0.0393225.93%
  • compound-governance-tokenCompound(COMP)$50.730.17%
  • Aleph ZeroAleph Zero(AZERO)$1.35-0.02%
  • siacoinSiacoin(SC)$0.0063720.12%
  • apenftAPENFT(NFT)$0.000000-0.53%
  • qtumQtum(QTUM)$3.08-0.50%
  • ocean-protocolOcean Protocol(OCEAN)$0.545.82%
  • AxelarAxelar(AXL)$0.64-4.33%
  • mask-networkMask Network(MASK)$3.837.92%
  • EthereumPoWEthereumPoW(ETHW)$2.91-0.46%
  • bitcoin-goldBitcoin Gold(BTG)$17.86-3.77%
  • convex-financeConvex Finance(CVX)$3.76-2.76%
  • enjincoinEnjin Coin(ENJ)$0.3075812.17%
  • holotokenHolo(HOT)$0.0017182.70%
  • ribbon-financeRibbon Finance(RBN)$0.356792-8.08%
  • CyberHarborCyberHarbor(CHT)$10.12-49.84%
  • theta-fuelTheta Fuel(TFUEL)$0.047322-0.14%
  • superfarmSuperVerse(SUPER)$0.66-5.78%
  • SafePalSafePal(SFP)$0.715.17%
  • celoCelo(CELO)$0.574.66%
  • loopringLoopring(LRC)$0.2331073.41%
  • mx-tokenMX(MX)$2.89-1.60%
  • ankrAnkr Network(ANKR)$0.0285968.74%
  • WorldcoinWorldcoin(WLD)$2.39-0.69%
  • yearn-financeyearn.finance(YFI)$8,362.02-1.28%
  • justJUST(JST)$0.031226-0.65%
  • safemoonSafeMoon [OLD](SAFEMOON)$0.0000000.05%
  • chiaChia(XCH)$29.9210.08%
  • Shib Original VisionShib Original Vision(SOV)$0.00000012.40%
  • BeldexBeldex(BDX)$0.0461300.04%
  • ethereum-name-serviceEthereum Name Service(ENS)$8.950.27%
  • jasmycoinJasmyCoin(JASMY)$0.0055923.21%
  • Lido Staked SOLLido Staked SOL(STSOL)$68.89-2.46%
  • Nexus MutualNexus Mutual(NXM)$45.29-0.55%
  • FasttokenFasttoken(FTN)$1.310.38%
  • audiusAudius(AUDIO)$0.2238031.98%
  • sushiSushi(SUSHI)$1.356.57%