Crypto Market Plunges; Do Kwon Breaks his Silence on the UST Saga

Chart of the Day





The broader crypto market continued its downward spiral on Wednesday as LUNA and UST suffered a massive implosion in spite of LFG's efforts to restore UST's dollar peg. It was not just LUNA and UST that took a plunge. As of the time of writing, BTC has fallen below the $28k support level after shedding a whopping 11.2% of its market value in the last 24 hours. If the current support near the $28.5k level buckles under further selling pressure, the bears may likely push BTC towards the $26.5k support zone. However, on-chain metrics have yet to detect any abnormal selling pressure from long-term holders, who are apparently still HODL-ing despite the bleak market outlook.

In a similar vein, ETH is now trading below the $2,000 psychological support after nosediving by 20% overnight amidst the broader market sell-off. Most leading L1 tokens and memecoins are also submerged in a crimson sea, as the altcoin market experienced massive double-digit percentage losses across the board overnight (Asian hours). 





Talk of the Town





Do Kwon, the founder and CEO of Terraform Labs, has finally broken his silence on Twitter in the aftermath of UST's collapse, and has put forth a new proposal in order to salvage the Terra ecosystem. To restore UST's dollar peg, Kwon has proposed to increase the supply of LUNA in the market as a bid to absorb investors' attempt to offload the un-stabilized stablecoin. The proposal would accelerate Terra's price stabilization mechanism, and increase LUNA's current minting capacity by three-folds to $1.2 billion.