Terra's Fall Continues to Impact the Crypto Market

The cryptocurrency market continues to be shaken by the decline of Terra, one of the stablecoin giants. While the effective decline in the crypto market continues, the depreciation of De-Fi-linked tokens has reached greater levels.

Terra's Fall Continues. The massive decline of the Terra stablecoin, one of the blockchain ecosystems supporting one of the biggest experiments in Decentralized Finance (De-Fi), has further fueled the decline in the crypto market, which has already entered a bear market. While Terra officials announced their plans to bring it back to life with a new blockchain to be made in their statements, the rest of the De-Fi world does not seem to be too convinced by these explanations. In addition, an error in the process that would make Ethereum more energy efficient has also led to increased concerns about the crypto market. Ethereum dropped 5.3 percent in the Asian market on Friday to $1729, while the second-largest cryptocurrency saw its value drop to 53 percent for this year. It is stated that Ethereum must be traded above $2000 in order to form a trace of exit from the bear market. Tokens related to the Decentralized Finance system such as Avalanche, Solana and Polkadot also fell between 5 and 8 percent on Friday. Bitcoin (BTC), on the other hand, remained a safe haven after falling to $ 28007, limiting its decline to 1.8 percent. Still, the cryptocurrency with the largest market diverged from risky assets on Thursday, which it had moved in parallel in the previous weeks. Stocks in the US have recovered from their lowest level this year.