The crypto market is covered in red again. This week the price of bitcoin price fell 2.4% and Ethereum’s price is down 5.0%. Cardano ADA fell 9.8%, XRP XRP lost 6.14%, and Solana slumped 12.4%. Meanwhile, the price of BNB BNB rose 7.4%. The waters are still murky after the mid-month roiling of the crypto markets. Since the big dip, most cryptos have been crab walking sideways as investors wait for the murk to clear to see where the market might be headed this summer. Some analysts are saying the worst is behind us. Others point to the interconnectedness of DeFi platforms and the brief depegging of the tether—the world’s largest stablecoin—which suggests the fallout from the LUNA LUNA/UST UST debacle may not be over. Tether USDT wasn’t the only asset to feel the effects of UST’s downfall. CoinDesk writes about a “little-noticed effect of the TerraUSD (UST) collapse.” The report references a letter published Friday by Goldman Sachs that suggested the interconnection of DeFi platforms “amplify systemic risk.” It relates the story of Lido, a liquid staking protocol that got caught up in the web of DeFi. To explain Lido it’s important to understand the concept of ETH 2.0 staking derivatives. ETH ETH 2.0 staking began last December with the launch of the proof-of-stake Beacon Chain.
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