Q2 2022 Cryptocurrency Report Highlights Terra Collapse

  • The 46-page report makes sense of how the aftermath of Terra UST and LUNA triggered the destruction of the entire crypto environment and stablecoin economy.
  • 3AC’s financial woes have directly or indirectly affected at least 12 different cryptocurrency companies
  • Coingecko scientists say a decrease in the stable share of the pie suggests that a specific measure of capital has left the crypto-biological system altogether.

Coingecko released the organization’s second quarter digital currency report for 2022, as there have been several huge changes over the past three months. The review, released on Wednesday, noted that the second quarter of 2022 was fraught with many horrific opportunities in the crypto space.

The cryptocurrency firm’s report makes sense that while spot market trading volumes remained constant at $ 100 billion overnight, the top 30 coins have lost more than a portion of their market cap since the last quarter. Much of the cryptographic gaffe started with a cascading type of influence caused by the disruption of Terra UST and LUNA.

Coingecko data suggests second-quarter investors ditched stablecoins rather than risk reducing them

Coingecko steals that shortly before the FSO defeat, the stablecoin was the third largest fiat-based token in existence and $ 18 billion was wiped out within days.

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The report notes that BUSD figured out how to become the third largest stablecoin. In addition to Terra’s FSO, other stablecoin assets have seen their valuations last, and Coingecko investigators suspect that a particular asset measure has left the crypto economy.

The 46-page report further explains how Lido’s fortified resources were impacted by Terra’s victory and the end of Three Arrows Capital (3AC) flexible cryptocurrency investments. An explicit graph that participated in the review shows how 3AC’s currency issues have had a direct or implicit impact on no less than 12 unique crypto organizations.

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Spread of the spinoff Terra and 3AC, Defi’s market capitalization collapses

Decentralized finance (defi) was also affected, as expressed by the creators of Coingecko due to the impacts of the third question and covenants defi, for example, Maple Finance was not bailed out as some client assets were lent to Orthogonal Trading, who then went to Finance of Babel. , one of the financiers of 3AC.

Defi herself has put up with a lot, and Coingecko’s information shows defi’s market cap dropped from $ 142 billion to $ 36 billion in 90 days. The report once again states that a significant portion of the defi value was wiped out to a large extent due to the outage of Terra and its stablecoin, UST.

Coingecko’s review covers a wide range of topics related to Q2 2022 crypto activity and touches on things like other stablecoins losing shares, decentralized trading volumes, non-fungible tokens, and NFT shopping malls. While the following quarter saw a lot of activity, Coingecko’s report shows how negative and gloomy it was.

Nancy J. Allen

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