According to Bitpush Market Data, ETH is now $1979.12, down 0.19% in 10 minutes, falls below $2000 mark.
According to Bitpush Market Data, BTC is now $29224.84, down 3.22% in 24 hours.
According to Bitpush Market Data, ETH is now $1957.82, down 0.13% in 10 minutes, falls below $2000 mark.
According to Bitpush Market Data, ETH is now $1961.48, down 2.77% in 24 hours.
According to Bitpush Market Data, ETH is now $1963.51, down 0.18% in 10 minutes, falls below $2000 mark.
According to Bitpush Market Data, BTC is now $29013.20, up 0.36% in 10 minutes, breaks above $29000 mark.
Goldman Sachs Says Crypto Drop Shouldn’t Impact US Spending Despite cryptocurrency having one of its worse couple weeks in the history of digital assets, Goldman Sachs says that it shouldn’t impact US spending, and thus shouldn’t have a large impact on the economy as a whole. A group of Goldman Sachs researchers, led by Joseph Briggs, said that the crypto market’s recent decline shouldn’t affect US spending as “the recent decline is very small relative to US household net worth.” A group of the bank's researchers, led by Joseph Briggs, said that any impact of the crypto markets slide on US spending should be very small since "the recent decline is very small relative to US household net worth."This research comes as Bitcoin is currently sitting at $28,903, which means the king of crypto is down almost 4% in the last 24 hours and 35% since the beginning of the year. In addition the recent death spiral of TerraUSD (UST) and LUNA has caused many investors to reevaluate their position on cryptocurrencies as a whole. Even treasury secretary Janet Yellen called for stablecoin legislation by the end of year in response to UST's catastrophic collapse. As of Friday, 16 of the top 20 cryptocurrencies by market cap are in the red with only the stablecoins staying in a very slight surplus. However, according to the investment firm’s researchers, cryptocurrency holdings as a percentage of net worth represent only 0.3% of US household net worth opposed to 29% for US equities. "While there is admittedly a lot of uncertainty around our assumptions—for example, it’s unclear whether the propensity to spend out of crypto holdings will ultimately be larger or smaller than for equities and other asset classes—our results strongly suggest that the crypto impact will be marginal relative to other factors."Author: Tyler Irvin
Anchor Saw $1B in Liquidations During UST and LUNA’s Collapse Terra’s popular lending platform, Anchor, saw more than $1 billion in liquidations last week as the Terra project collapsed, seeing their stablecoin, TerraUSD (UST), and their other cryptocurrency LUNA drop 94% and 99.99% respectively. That $1 billion in liquidations marked the largest liquidation event in decentralized finance (DeFi) history. According to data reported by The Block, $1.048 billion worth of staked crypto collateral deposited by borrowers on Anchor was liquidated between May 7 and May 12. LUNA accounted for over $750 million, with the remaining liquidations coming from avalanche (AVAX), Ethereum (ETH), Solana (SOL) and Cosmos (ATOM). An event on this scale hasn’t happened since last year, when Compound and Aave saw $633 million in liquidations during a general market crash. In short, what led to the liquidation event was the collapse of UST. Anchor is a lending platform on the Terra ecosystem. Users can borrow from Anchor by putting up collateral in the form of crypto such as LUNA, ETH, AVAX, SOL or ATOM. Borrowers on Anchor pay an interest rate of 10% in return for being able to take out loans worth up to 60% of the collateral they deposit on the platform. Anchor provides these loans worth up to 60% of the collateral in the form of UST. Liquidations occur when the value of the staked collateral falls below the loan amount. In other words, Anchor wants to make sure that they are still able to “get their money.” When LUNA went from $63 to $35 on May 9 losing almost half of its value, borrowers who deposited LUNA as collateral were subjected to liquidation. However, LUNA didn’t stop there. On May 10 LUNA went from $35 to $10 and down again to less than $1 on the following day, according to Bitpush Terminal data. In order for Anchor to cover themselves, they had to liquidate the collateral, especially LUNA. In addition, the LUNA crash was paired with a general market decline which saw the other cryptocurrencies used as collateral on Anchor plummet in value. That forced Anchor to liquidate those other cryptocurrencies as well, but at a far less rate, as they didn’t drop in value as much as LUNA. The majority of LUNA liquidations occurred on May 9 and 10 when the value dropped substantially both days. Currently LUNA sits at $0.000129, while UST is at the $0.0635 mark. Founder and CEO of Terraform Labs, Do Kwon, is trying to recover the project by launching a fork on the blockchain in order to launch a new blockchain. Author: Tyler Irvin
According to Bitpush Market Data, BTC is now $28999.04, down 0.24% in 10 minutes, falls below $29000 mark.
According to Bitpush Market Data, BTC is now $29310.70, down 3.36% in 24 hours.