With the collapse of TerraUSD (UST), the stable cryptocurrency of the Terra blockchain, below $ 1, an UST crisis occurred, which caused the crypto money market to catch a strong upward momentum. Many developments occurred during the week of the UST crisis, and some stable cryptocurrencies were also significantly affected by the UST collapse. The market value of USDT has also dropped by an average of $10 billion since the collapse of the UST.
$10 Billion Drop in USDT Market Value
After the collapse of TerraUSD (UST), most cryptocurrencies fell by quite a lot. Moreover, some stable cryptocurrencies, especially USDT, were also significantly affected by the UST collapse. USDT’s market cap has dropped from $84 billion to $73.3 billion since the collapse of the UST, an average of $10 billion.
On the other hand, the market value of USDC, which is the second highest stablecoin with the market value after USDT, increased by an average of $ 5 billion in this process. USDC’s market cap has increased from $48.2 billion to $53.2 billion in the last 2-week timeframe.
Balance Sheet of the TerraUSD Crisis
After the high-rate losses it recorded, Bitcoin (BTC) pinned the price levels of $ 24,500 during the week of the TerraUSD crisis. Ethereum (ETH) fell below the $ 2,000 price levels, albeit temporarily, in this process. There was also a significant drop in the overall market value of cryptocurrencies. With the volatility in the cryptocurrency market increasing significantly, billions of dollars worth of short and long positions were liquidated in the week of the UST crisis.