Weekly News for Institutional Investors
Key Crypto Market Figures
Crypto Tradable Indices (CTIs) Weekly Performance
The past couple of weeks have not been kind to digital assets, or risk assets more generally (see further details in Crypto Carnage). In addition, to the generalised deterioration in investor sentiment, crypto has experienced its own sector-specific risk-off event – the depegging of the algorithmic stablecoin Terra (UST) and the obliteration of value for its sister coin Luna.
The latter’s drop to almost zero significantly impacted Top 10 DeFi (-45%) - Luna accounted for 27% of assets as of last Monday; Proof of Stake (-31%) - Luna accounted for 13%; and, top 10 Crypto (-20%) - Luna accounted for 6%.
The Luna crisis has been a drag for other coins sitting within the Terra ecosystem. On the back of depleted deposits, Anchor’s token dropped sharply (ANC -88%) as did the Mirror protocol (MIR -66%). Some contagion to other stablecoins has occurred but, on the whole, it has been modest. One decentralised stablecoin under pressure is Kava’s USDX (-17%) because some of the collateral reserves that back it’s minting included UST. By contrast, Maker surged (MKR +40%) benefiting from the Terra exodus as investors switched to its Maker’s stablecoin DAI.
Sources: Coingecko and AlphaVantage
- More than $200 billion erased from entire crypto market in a day as sell-off intensifies: CNBC
- What Happened to the $3.5B Terra Reserve?: Coindesk
- How Crypto.com price will react after suspending trading for LUNA, MIR, and ANC: FxStreet
- The collapse of UST and LUNA was devastating, but there is still hope for crypto: Coindesk
- TerraUSD ‘stablecoin’ delisted from crypto exchanges: TheGuardian
- Binance CEO CZ to support Terra community but expects more transparency: Cointelegraph
Crypto crash explained: Why price of Luna and Bitcoin crashed and if experts think cryptocurrency will recover: Inews
- Ryan Shea has published his analysis on the Terra Luna crisis: Crypto Carnage
- Ryan Shea was interviewed by Blockpit AG in a podcast about the state of the crypto market, prospects for a recession, and how this will impact crypto-assets both in the short and long term.
- Trakx has published a press release about it strategic alliance with Lumrisk Bloomberg
- Ryan Shea was quoted in Coindesk - The FCA is holding its first cryptosprint: here’s what the digital asset community wants from it - in Cointelegraph - Bitcoin gains superior to stocks in the long term, economist says and in Crypto Trading News - How will the UST crash affect other stablecoins?
Trakx CTIs Performance
Sources: Coingecko and AlphaVantage
*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.
Trakx is a global fintech company creating new standards for digital asset investments. Through our trading platform, we offer thematic Crypto Tradable Indices (CTIs) and customised solutions, providing sophisticated investors a high degree of compliance, custody and liquidity. Trakx is registered with the French regulator (AMF).
Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.
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