Bitcoin started the week with bearish momentum, continuing from the previous week. Following the bad news regarding the Terra ecosystem, BTC fell to roughly $25k, and as expected, several altcoins followed Bitcoin down the drain. Furthermore, interest rate hikes and inflation fears continue to weigh on the general markets.
However, the market has begun to show indications of respite, with the largest cryptocurrency currently trading above $30,000 at the time of writing.
With that out of the way, let's take a look at some of the cryptocurrencies that have received a lot of attention this week.
Terra (LUNA)
This week, Terra gained a lot of attention for the wrong reasons. Let's take a quick look at the project before we go into what happened. Terra is a public blockchain platform that uses an algorithmic decentralized stablecoin suite. The stablecoins help to support the vibrant ecosystem that provides DeFi to the public. Moreso, the project promotes itself as "Internet Programmable Money." Furthermore, the protocol is an open-source stablecoin network run by its stakeholders.
The collapse of LUNA was caused by its connection to the Terra ecosystem's stablecoin, TerraUSD (UST). When one UST is minted, one Luna is destroyed, and vice versa. To keep UST from falling below a dollar, holders sell or burn their UST for LUNA while profiting. However, a substantial amount of UST was just dumped, leading the stablecoin to depeg. As usual, fear set in, resulting in a mass sell-off. This move resulted in more LUNA being minted, boosting its circulating supply. As a result, the price of LUNA plummeted, generating anguish among its traders and investors.
Thus far, the blockchain has resumed activity following a nine-hour halt while validators plotted a route out of its ongoing crisis.
Unfortunately, for many people, LUNA plummeted beyond all hope, approaching -100%.
Key Metrics*
Price - $0.00005128
Market cap - $336 million
Circulating supply - 6.5T LUNA
Total supply - 6.9T LUNA
CMC Rank - #234
ATH - $118.74
More details about this project can be found here.
*Data as of May 13, 2022
Magic Internet Money (MIM)
Magic internet money is essentially a stablecoin that can be exchanged for any other stablecoin. The initiative bills itself as a "spell book" that enables users to generate magical online money. Additionally, the spell caster for the project can give collateral in the form of interest-bearing crypto assets such as yvUSDT, yvUSDC, and xSUSHI, among others.
MIM is one of the top stablecoins aiming for decentralization. Also, MIM's parent project, Abracadabra.Money, unveiled a new lending primitive dubbed AbraNFT sometime last month.
Key Metrics*
Price - $0.9962
Market cap - $1.9 billion
Circulating supply - 1.93B MIM
Total supply - 1.93B MIM
CMC Rank - #2844
ATH - $1.08
More details about this project can be found here.
*Data as of May 13, 2022
X2Y2 (X2Y2)
X2Y2 is an Ethereum-based decentralized NFT marketplace. The project intends to address some of the most pressing issues in the current NFT marketplace infrastructure. Among the difficulties to be addressed are widespread system outages, a centralized administration paradigm, and unilaterally withholding user assets. The NFT-based project includes, in addition to basic market functions, quick trade push notifications, integrated rarity ranking, bulk mailing, and more.
According to reports earlier this week, X2Y2 generated over $228 million in volume last month. This volume is generated by 8,240 users, indicating that large-volume trades are taking place.
In addition, as expected with the general market's decline, X2Y2 fell nearly 7% in the last seven days. However, the token has risen by more than 32% in the last month.
Key Metrics*
Price -$0.2339
Market cap - $41 million
Circulating supply - 177.7M X2Y2
Max supply - 1B X2Y2
CMC Rank - #2983
ATH - $4.17
More details about this project can be found here.
*Data as of May 13, 2022
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