Floki Inu Soars to New Heights in the Cryptocurrency Market
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2022-05-13 | Selina Mathew
The cryptocurrency massacre resumed on Thursday, with the price of two benchmark "stablecoins" dropping below $1, adding fuel to a collapse that has seen the price of bitcoin drop to its lowest level in almost a year.
This week, two of the most stable tokens in the cryptocurrency industry went below their benchmark, sparking a digital currency selloff that resulted in price decreases in bitcoin, ether, and solana on Thursday. Bitcoin dropped to $26,513 on Thursday, down 8% from Wednesday. Ripple has dropped 19% to $0.38, while ether has dropped 14% to $1,981. These drops started shortly after the values of terraUSD and luna fell below $1.
In the crypto world, TerraUSD and Luna are known as stablecoins, which implies their value is linked to a commodity or currency. Terra and luna have been tied to the US dollar in this example, therefore each luna is intended to be worth $1. Some investors have come to rely on stablecoins like luna to protect their funds from the dramatic volatility that many cryptocurrencies experience.
"Belief has been ebbing"
According to Edward Moya, senior market analyst at Oanda, the fall of luna and terraUSD signals to investors that the larger crypto industry is in jeopardy.
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