The crash in Terra sisters has still mind-boggled investors across the globe sparking cautions in the crypto market. Top of the house cryptos Bitcoin and Ether also faced the brunt of selling pressure in stablecoins. The volatility stays in the crypto market as uncertainties around the stable coins after Terra sisters’ free fall has raised questions over the stability in crypto assets. On Friday, the market surged in terms of valuation but nosedived in volumes. Bitcoin struggles to float above the $ 30,000 mark.
As per CoinMarketCap, currently, the global crypto market cap is $ 1.28 trillion, a 1.47% increase over the last day. However, in volume terms, the crypto market dived by 8.27% to $ 80.65 billion, while the total volume in DeFi is currently $ 7.15 billion, 8.87% of the total crypto market 24-hour volume.
Furthermore, the volume of all stable coins is now $ 72.03B, which is 89.31% of the total crypto market’s 24-hour volume.
Although trading in the green, Bitcoin however erased its $ 30,000-mark and touched the day’s low of $ 29,802.81. Currently, the coin trades for around $ 29,939.46.
Ether is slightly above $ 2,010. The gains in this coin are nearly 2% at the moment.
Notably, Bitcoin and Ether are recovering from their previous losses. Last month, Bitcoin made some heavy losses and neared the $ 25,000-mark. However, Bitcoin and Ether have now narrowed their downside by 3% and 6% in the last seven days.
However, Bitcoin has dived by nearly 28% in one month, while in a year the drop is over 26%. Bitcoin which dominates the crypto market had touched an all-time high of $ 68,789.63 in November last year.
From its all-time high, Bitcoin has nosedived by over 56% in six months.
Terra USD gave up its peg, while its sister LUNA collapsed to zero limits.
Meanwhile, Terra UST continues to witness selling pressure. The coin has plunged by more than 11% and trades around $ 0.07846. In the last seven days, the coin’s drop is more than 48%. UST lost its peg following the Wormhole hack, which also led to a drastic price crash for LUNA.
Currently, Terra LUNA trades at around $ 0.0001351 up by 1.31%. The coin had last month touched a high of $ 119.18. However, since the start of May, LUNA has slumped 100%.
Nischal Shetty, Co-founder and CEO at WazirX said, “The recent incident that took place concerning Luna is cautioning.”
What should investors do?
Shetty pointed out that any investment comes with its set of risks and crypto is no different.
To Investors, the WazirX co-founder guided that in general, investors should do their research on any tokens that they choose to invest in. They should only invest once they have enough understanding and knowledge of the particular crypto.
He added, to help them with the research, there is an abundance of information available on credible platforms that will help them understand the project associated with the token and provide token-specific reports routinely.
“Investors should do their research instead of being driven majorly by the sentiment of their peer group or FOMO,” Shetty said.