On May 12, the largest cryptocurrency by market capitalization at one point fell deeply to $ 25,402 but stabilized again in the New York session. The downtrend showed signs of slowing down when bottom-fishing cash flow appeared.
However, Bitcoin is still down 20% from the previous week. In the Asian session on May 13, the currency was traded around the price of 29,500 USD. Experts predict that the cryptocurrency market will continue to be volatile.
Meanwhile, strong price volatility has created selling pressure on many alt-coins over time. When entering a downtrend, alt-coins lose more value than Bitcoin due to a higher level of risk.
Solana’s SOL token has dropped 46% in the past week, and Ether has also lost 30%.
Regarding the Terra crisis, on May 13, the price of the LUNA key token fell by more than 99%, leading to the shutdown of this blockchain network. Officially announcing on Twitter, Terraform Labs confirmed the blockchain has been paused. The decision was made after a series of dramatic developments that caused unprecedented declines in LUNA and TerraUSD (UST) – the algorithmically designed 1:1 pegged USD stablecoin but lost its peg and also followed suit. legs “sister” LUNA when only 1 cent (0.1 USD).
With LUNA losing 99% of its value, Terraform Labs is no longer able to withstand attacks. However, the platform says it will restart the network after applying the patch to disable other trusts. “The network will be back up and running if it gets 2/3 of the online votes.”
On May 12, LUNA/USDT contracts were delisted from Binance after the value of the asset pair fell below 0.005 USDT. Previously, Huobi exchange also stopped transactions related to the LUNA key.