a look over decrypt The homepage this week would have been enough to see that the global crypto industry is in a hive of panic.
The craziest week in krypton I saw some 200 billion dollars Total market capitalization evaporated between Wednesday and Thursday, while industry leaders Bitcoin and Ethereum fell to lows. not seen since 2020Putting corporate whales like Elon Musk and Michael Saylor on back underwater. Moreover, according to analysts at Huobi, we didn’t reach the bottom.
Terra’s leading cryptocurrency LUNA – one of the world’s top 10 last week –dropped to zero. LUNA recorded an all-time high of $118.19 just last month and is currently trading well below a penny.
LUNA’s death caused collapse Terra’s other leading coin, the dollar-pegged UST, bottomed at 13 cents on Friday, according to CoinMarketCap. As of this writing, it’s up a little today and is up to 19 cents.
Numbers of the week
now sixth consecutive week Market drop as nearly every top 100 cryptocurrencies by market cap start the weekend with double-digit percentages. Bitcoin traded at $28,809, down 20% from last week, and Ethereum dropped 27% to $1,968.
Among the biggest losers of the week: 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 coins to earn this week was Maker, the 42nd largest cryptocurrency by market cap, with $1.4 billion, up 7.1% to $1,419.
news of the week
Aside from Terra’s collapse, the news cycle has continued into the past few months, despite the growing talk about stablecoin regulation.
On Monday, Instagram announced it was testing NFT connection with a handful of US-based collectors and creators. The pilot allows testers to link crypto wallets to their accounts and view verified collections. Parent company Meta also said that Facebook NFT support is expected soon.
Economist and former non-minter Nouriel Roubini began working on an inflation-proof, dollar-pegged stablecoin, according to a press release. Bloomberg report On Monday. Roubini’s Atlas Capital has commissioned Andreessen Horowitz-backed Web3 developer Mysten Labs to develop technology for “United Sovereign Governance Gold.” Optimized DollarThe project is a complete spin on Roubini, who delivered a 37-page talk in 2018 calling crypto the “Mother of All Scams.”
Also Monday, Salvadoran dictator Nayyib Bukele bought 500 BTC for approximately $15.3 million. This brings the total number of El Salvador’s Bitcoin stash to 2,300, or about $66 million – currently $6.25 million (9%) decrypt reported the purchase. In total, Bukele $37 million in the hole today.
On Tuesday, Treasury Secretary Janet Yellen highlighted why Terra’s collapse is an example of stablecoins. urgently needed. On Thursday, Yellen spoke again about crypto, this time saying that the $1.23 trillion market cap of the industry does not pose a systemic risk to the US financial system and, accordingly, stablecoins.but they grow so fast and we present the same kinds of risks we’ve known from bank runs for centuries.”
Securities and Exchange Commission chair Gary Gensler harsh criticism on cryptocurrency exchanges and stablecoins during an interview with Bloomberg Tuesday. Contesting the fact that many major exchanges run their custody, market-making and trading services without segregation as traditional exchanges require, Gensler accused them of “often trading against their clients because they are taking market share against their clients”.
On the same day, Germany’s federal ministry of finance (BMF) announced that the country’s initial guidance about the income tax treatment of cryptocurrencies. Katja Hessel, Parliamentary State Secretary, said in a statement: an idiom selling cryptocurrencies such as bitcoin or Ethereum It is tax-free for individuals one year after the assets are owned.
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