Cryptos Rise Tracking Global Equities
Crypto market capitalization increased in the past 24 hours as markets attempted to move in tandem with the global rally in stock markets, especially the tech stocks.
Stablecoins continued to impact sentiment amidst reports that another algorithmic stablecoin DEI lost its peg to the Dollar. DEI, ranked 2856 overall is currently trading at $0.5812.
Investors also assessed the fate of beleaguered Terra cryptos LUNA and USDT amidst reports that Terraform Labs plans to carry out a fork of the Terra blockchain. As per the revival plan issued by Do Kwon of Terraform Labs, the Terra chain is to be forked into a new chain without algorithmic stablecoins called Terra (token $LUNA) whereas the old chain would be called Terra Classic (token $LUNC). Both the chains would coexist.
Overall crypto market capitalization increased to $1.31 trillion, rising almost 4 percent in the past 24 hours.
Bitcoin traded between $29,251.89 and $30,694.49 versus the 7-day low of $26,350.49. Bitcoin is currently ranked in the 10th spot among all assets as per companiesmarketcap.com. BTC is currently trading at $30,488.22, up 2.87 percent on an overnight basis and dominates 44.2 percent of the overall crypto market.
Ether touched a low of $1,988.81 and a high of $2,113.06 in the past 24 hours, versus the seven-day low of $1,748.30. It is currently trading at $2,096.26, having gained 4.5 percent in the past 24 hours. ETH dominates 19.3 percent of the overall crypto market.
Among the top 20 cryptos, BNB (BNB), XRP(XRP), Cardano (ADA), Solana (SOL), Dogecoin (DOGE), Polkadot (DOT), Avalanche (AVAX), Shiba Inu (SHIB), Polygon (MATIC), Cronos (CRO), Litecoin (LTC) and NEAR Protocol (NEAR) have outperformed the broader market.
Though almost a week has elapsed since the Terra meltdown, the debate on stablecoins still continues. In a recent tweet, Ethereum co-founder Vitalik Buterin had noted that “algostable has become a propaganda term serving to legitimize uncollateralized stables by putting them in the same bucket as collateralized stables like DAI/RAI. And we need to really emphasize that the two are very different.”
Meanwhile the SEC chair Gary Gensler offered his comments in the wake of the Terra fiasco. The SEC chair opined that the investing public was not getting full and fair disclosures. He also reiterated that cryptocurrencies needed to be regulated as securities.
The Terra episode is bound to impact the perspective of both investors and regulators to cryptocurrencies in general and stablecoins in particular. The volatility in the crypto market is also likely to increase as investors grapple with the new risk-reward dynamics.
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