Crypto Hebdo: From Fear in the Crypto Market to Ethereum’s Mainnet, Top and Flop, Perspectives..

The Terra ecosystem fiasco has created an environment of fear that the crypto market has not seen since the Covid-19 crash. The “Fear and Greed” index hit a low of 8 out of 100. Even the Tether stablecoin lost a bit of a ride as it dropped to $0.94. Despite this panic situation, the French traders are not discouraged. They can keep hope alive as the Ethereum migration progresses. Here’s a quick look back at the news that dominated the crypto world this week!

Terra Community rejects Do Kwon’s proposal

Do Kwon, emerging from his silence following the collapse of his algorithmic stablecoin, had offered Terra users the reconstruction of the network and the issuance of a new token. The South Korean developer wanted to come up with a solution similar to Ethereum. It is recalled that in 2016, the original Ethereum network had undergone a hacking known as “The DAO Attack”, which prompted developers such as Tim Beiko and Vitalik to break away from the original network, namely “Ethereum Classic to to create the blockchain currently known as “Ethereum”.

Do Kwon hoped to repeat the same move. But his reputation as a scammer and the rumors circulating that the UST and Terra are Ponzi schemes certainly motivated community members to vote against his proposal. The result even points to a total refusal. Of the 2,352 people who took part in the vote on the Agora forum, 90% answered “no” to the proposal for a fork. With this unfavorable vote, the future of the ecosystem is thus sealed: goodbye Terra and its algorithmic stablecoin.

Read our article to learn more: Terra (LUNA): Do Kwon’s Proposed Recovery Plan Is Rejected by the Cryptobol

USDT shocked by Terra’s FUD

The collapse of the UST had spread to other stablecoins. Even the largest stablecoin on the market saw a slight decline. Indeed, USDT’s price fell to $0.94, although it returned to parity very quickly. There are also rumors that the stablecoin had a flash crash. It was crypto expert pseudonym @CryptoWhale, who shared the news. According to him, the USDT fell 99% to $0.0013 in the exchanges as of May 12 at 8:03 AM.

However, this information turns out to be incorrect as neither Tettther nor the exchanges have communicated about it. But contrary to what critics of stablecoins may think, they have grown stronger during this bear market period. Their dominance went above 10% and rose to 12.5%.

Read our article to learn more: USDT: A Flash Crash That Could Destroy the Stablecoin

The Fear and Greed Index Below the Floor Level

For more than two years, the fear index had never reached such a critical level. In fact, the ” fear and greed dropped to 8 on a scale of 0 to 100 from extreme fear to extreme excitement. Without going into details, we would like to point out that as the index approaches its lower bound, it indicates that fear is gripping the market. Thus, the current Bitcoin Fear and Greed level indicates that fear is at its peak in the crypto market.

In addition to this terrifying situation in the market, Wall Street was no longer missing its dose of volatility. During Friday’s session, the representative US stock market index, the S&P 500, entered the bear market zone after falling 2.3% intraday and -20.9% from its peak in January.

Read our article to learn more: The Fear and Greed index shows a value of 8, the lowest since the Covid-19 crash

Ethereum mainnet is coming

If there is one event that could reverse the situation the market finds itself in, it is the Ethereum “Merging”. Originally scheduled for this summer, Ethereum developers recently announced to the community that the migration would be delayed by another quarter. But a testnet much like the mainnet should take place sometime in June.

This testnet, called Roptsen, is the testnet that will best test the proof-of-stake consensus update. The developers do not hide their joy for the creation of this testnet. Preston Van Loon, an Ethereum developer at Prysmatic Labs, said:

“On June 8, the Ropsten testnet will be merged! The merger with Ropsten is a huge test step towards the Ethereum mainnet merger later this year. †

Read our article to learn more: Ethereum: The Merge’s Testing Phase Is Complete as Price Drops Below $2,000

The French in the crypto sphere do not discourage

While many will see their portfolios drop by more than 50%, French traders will continue to engage in cryptocurrencies. While they admit to having lost a lot, they let it be known that in the end they learned a lot from crypto. Etienne, a French crypto trader, interviewed by French media outlet BFM, said:

“I lost some money on LUNA, which I also made nice profits on. It would have been largely devastating to me if it had happened a month earlier. Above all, I learned a lot about risk management. I am and will be a little more careful with this event, that’s for sure. I lost money, but most of all I learned”

Read our article for more information: Despite the crypto crisis, the French are not discouraged

Top and Flop: KNC arrives as leader

This week has been tough for cryptocurrencies, but some of them have managed to hold their own. For example, there is the token of the KyberSwap exchange, KNC, which gained 45.96% this week. Its rise was fueled by the referral program launched by KyberSwap that aims to reward users who advertise on the exchange. Behind the KNC token is that of Ethereum competitor Klaytyn, which recorded an interesting growth rate of 19.40%. The trading token Kucoin also made an extraordinary jump in weekly price.

tops:

cryptos current course Profit in 7 days
Kyber Network Crystal v2 (KNC) $2.40 45.96%
Klaytyn (KLAY) $0.4813 19.40%
KuCoin Token (KCS) $16.57 17.75%
Source: Coingecko

flops:

cryptos current course Loss in 7 days
TerraUSD (UST) $0.0677 -63.07%
The graph (GRT) $0.1599 -18.29%
Arweave (AR) $15.47 16.50%
Source: Coingecko

Crypto Prospects…

The weeks go by and seem similar for Bitcoin and cryptocurrencies. Always the same lesson: Bitcoin must defend a level X to avoid entering the bear market. After failing to defend this level, experts establish another level XN, (N: a positive integer). Thus, this iterative sequence will continue until even a Bitcoin under $20,000 is not considered in the “bear market”.

Without a crystal ball, predicting the future is complex, but given Bitcoin’s strong correlation with the US market, the current situation predicts a difficult year for cryptocurrencies. As long as we have this macroeconomic context (rise in government interest rates, inflation and risk of recession), the stock market and Bitcoin will have a hard time recovering.

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