Crypto Hebdo: From fears in the crypto market to Ethereum’s Mainnet, Top and Flop, Perspectives ..

The failure of the Terra ecosystem has created an environment of fear that the crypto market has not seen since the Covid-19 crash. The “Fear and Greed” index hit the bottom of 8 out of 100. Even the Tether stablecoin lost a bit of a turn when it tumbled towards $ 0.94. Despite this panic situation, French traders are not deterred. They can keep hope alive as Ethereum migration moves forward. Here’s a brief look back at the news that dominated the crypto world this week!

Terra Community rejects Do Kwon’s proposal

When he came out of his silence after the collapse of its algorithmic stablecoin, Do Kwon had offered Terra users the rebuilding of the network and the issuance of a new token. The South Korean developer wanted to come up with a solution similar to Ethereum. It is recalled that in 2016 the original Ethereum network had been subjected to a hacking act known as “The DAO Attack”, which had pushed developers like Tim Beiko and Vitalik to break away from the original network, namely “Ethereum Classic to create the blockchain currently known as “Ethereum”.

Do Kwon hoped to repeat the same move. But his reputation as a scammer, as well as rumors that UST and Terra are Ponzi schemes, certainly motivated members of the community to vote against his proposal. The result even indicates a total rejection. Among the 2,352 people who took part in the vote on the Agora forum, 90% of them answered “no” to the fork proposal. With this unfavorable vote, the future of the ecosystem is therefore sealed: goodbye Terra and its algorithmic stablecoin.

To find out more, read our article: Terra (LUNA): The recovery plan proposed by Do Kwon has been rejected by the cryptosphere

USDT shaken by Terra’s R & D

The collapse of UST had rippled through to other stack coins. Even the largest stablecoin on the market experienced a small depeg. In fact, the price of the USDT fell to $ 0.94, although it returned to parity very quickly. There are also rumors that stablecoin has suffered a lightning crash. It was the crypto expert pseudonym @CryptoWhale who shared the news. According to him, USDT fell 99% to $ 0.0013 on the stock exchanges at. 8:03 on May 12th.

However, this information turns out to be false because neither Tetther nor the stock exchanges have communicated on this subject. But contrary to what critics of stack coins may think, they have strengthened during this bear market period. Their dominance went above the 10% mark and increased towards 12.5%.

To learn more, read our article: USDT: A Lightning Crash That Could Destroy Stablecoin

The fear and greed index below floor level

For more than two years, the fear index had never reached such a critical level. Actually is ” fear and greed dropped to 8 on a scale of 0 to 100 from extreme fear to extreme tension. Without going into details, we would like to point out that as the index approaches its lower limit, it shows that fears are taking hold in the market. So the current Bitcoin Fear and Greed level indicates that fears are at their highest in the crypto market.

Alongside this fear situation in the market, it was no longer necessary for Wall Street to add its dose of volatility. In Friday’s session, the representative index of the US stock market, the S&P 500, entered the “bear market” zone after a decline of 2.3% intraday and -20.9% compared to its peak in January.

To find out more, read our article: The Fear and Greed index shows a value of 8, the lowest since the Covid-19 crash

Ethereum mainnet is coming

If there is one event that can reverse the situation in which the market finds itself, it is the “merger” of Ethereum. Ethereum developers, originally scheduled for this summer, had recently informed the community that the migration would be delayed for another quarter. But a test network that is very similar to the main network should happen sometime in June.

Called Roptsen, this test network is the one that will best test the update of “proof-of-stake” consensus. The developers do not hide their joy in setting up this test network. Preston Van Loon, an Ethereum developer from Prysmatic Labs said:

“Ropsten’s test network will be put together on June 8! The Ropsten merger is a major test step against the Ethereum mainnet merger later this year. »

To learn more, read our article: Ethereum: The testing phase of The Merge has ended as the price drops below $ 2,000

The French in the cryptosphere do not deter

Although many will see their portfolio fall by more than 50%, French traders will continue to engage in the cryptosphere. While admitting to having lost a lot, they let it be known that they eventually learned a lot from crypto. Etienne, a French crypto dealer interviewed by the French media BFM said:

“I lost some money on LUNA, which I also had some nice gains on. It would have been pretty much devastating to me if it had happened a month before. Above all, I learned a lot about risk management. I am and will be a little more careful with this arrangement, that is for sure. I lost money, but most of all I learned ”

To find out more, read our article: Despite the cryptocurrency crisis, the French are not discouraged

Top and Flop: KNC arrives as leader

This week has been tough for cryptocurrencies, but some of them have managed to hold their own. For example, there is the token from the KyberSwap exchange, KNC, which took 45.96% on the week. Its rise was driven by the referral program launched by KyberSwap, which aims to reward users who advertise the exchange. Behind the KNC token is Ethereum competitor Klaytyn, which recorded an interesting growth rate of 19.40%. Exchange token Kucoin also made an extraordinary jump in the weekly rate.

Peek:

Crypto tower Current course Gain of 7 days
Kyber Network Crystal v2 (KNC) $ 2.40 45.96%
Klaytyn (KLAY) $ 0.4813 19.40%
KuCoin Token (KCS) $ 16.57 17.75%
Source: Coingecko

Flops:

Crypto tower Current course Loss of 7 days
TerraUSD (UST) $ 0.0677 -63.07%
Graphene (GRT) $ 0.1599 -18.29%
Arweave (AR) $ 15.47 16.50%
Source: Coingecko

Crypto Outlook …

The weeks go by and are similar to each other for Bitcoin and cryptocurrencies. Always the same lesson: Bitcoin must defend a level X to avoid entering the bear market. After failing to defend this level, experts establish another level XN, (N: a positive integer). So this iterative sequence will continue until the moment when even a Bitcoin under $ 20,000 will not be considered to be in the “bear market”.

Without a crystal ball, it is complex to predict the future, but given Bitcoin’s strong correlation to the US market, the current situation heralds a tough year for cryptocurrencies. As long as we have this macroeconomic context (rise in government interest rates, inflation and risk of recession), the stock market and Bitcoin will have a hard time recovering.

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