Ethereum traded the lowest against Bitcoin this weekend since October last year at 0.06 ETHBTC. So even though the highly anticipated Ethereum merge is coming up, it seems that Bitcoin is still perceived as the safest crypto asset, which investors are more unwilling to liquidate in times of risk-off and increased uncertainties compared to Ethereum and other cryptocurrencies. Based on this matter, it is likely to see Ethereum and other cryptocurrencies percentage-wise tumbling more if Bitcoin breaks support at 28,500.
Terra 2.0 launches
One of the larger cryptocurrencies Terra blew up earlier this month by entering a death spiral
, wiping out a combined $58bn market capitalization – $40bn for LUNA and $18bn for its stablecoin UST - at their respective highest. Fast forward not only one month, and Terra 2.0 launched
this weekend. The idea behind Terra 2.0 is to restore its ecosystem of various protocols, this time without its native stablecoin UST. Terra 2.0 was distributed to holders of Terra. At the time of writing, Terra 2.0 has a market capitalization of $1.2bn.
At some point, one should acknowledge one’s defeat and let a project die out. Terra should have been such a project. In our view, Terra has already caused enough harm to individuals and the crypto market as a whole. It genuinely seems the people behind Terra believe that they can always give it a new shot, in case their first effort did not turn out well, thus neglecting that their flawed design has already caused a meltdown worth billions. The case of Terra does not put the crypto market in a good light nor does the Terra 2.0 narrative of “let us just try again”. The crypto market should focus on projects that create value to become something else than a speculative asset class.