ETH has remained in a range between AU$2,500 and AU$3,000 since May 12.

  • Many top altcoins, including AVAX and BNB, lost substantial value after the recent Terra Luna debacle.
  • Stablecoin issuer Tether reduced its commercial paper reserves by 17% during the first quarter of 2022.
  • The American subsidiary of the FTX cryptocurrency exchange is set to allow its users to trade stocks using stablecoins.

Ethereum is up 3.6% in the last 24 hours. However, the altcoin struggled to clear its resistance of AU$3,000 cleanly, currently trading at AU$2,870.

The lack of positive ETH price momentum is a direct reflection of low investor confidence in the space. Following the recent erasure of Terra Luna, many important projects have been affected by many monetary reactions. Avalanche (AVAX), for example, lost 50% of its value between May 10 and May 12 after it was announced that the Luna Foundation Guard (LFG), a non-profit subsidiary of TerraForms, held about 1.97 million of AVAX tokens in its vaults.

LFG has yet to unload any of its AVAXs, which could lead to more sales in the short term. Terra also holds other tokens including Bitcoin (BTC), Binance Coin (BNB) in its reserves. Both assets have seen their values ​​fall by 17.8% and 19% respectively in the past 14 days.

The total market capitalization of the digital asset sector is down about 7% since yesterday. ETH’s valuation sits at A$348 billion (US$245 billion), with the altcoin accounting for an 18.2% share of the crypto market.

How to buy Ethereum

Tether commercial paper holdings drop 17% from Q1 2022

USDT Stablecoin issuer Tether recently revealed that it has reduced its investments in commercial paper while increasing its US Treasuries. The company noted that its reserves are “fully collateralized” in a recent blog post to allay investor fears after USDT “briefly anchored” at around US$0.98 on May 12.

In the first four months of the year, Tether reduced its commercial paper holdings by 17%, down from US$24 billion to US$20 billion. A further 20% reduction appears to be on the way according to the company’s quarterly report. Tether increased its investments in various money market funds and US Treasuries by 13%, from around US$34.5 billion to US$39 billion.

FTX US set to allow stablecoin-based stock trading soon

Popular cryptocurrency exchange FTX is entering the stock trading fray. The company’s US wing is set to launch a stock trading module – FTX Stocks – directly through its smartphone app. The platform will allow retail customers to fund their accounts with fiat-backed stablecoins like USD Coin (USDC) alongside traditional options like wire transfers, credit card deposits, and more.

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum, and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing

Warning:
This information should not be construed as an endorsement of the cryptocurrency or any specific provider, service or offering. This is not a trade recommendation. Cryptocurrencies are speculative, complex and carry significant risk – they are highly volatile and susceptible to secondary activity. Performance is unpredictable and past performance is not indicative of future performance. Consider your own circumstances and get your own advice before relying on this information. You should also check the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the websites of relevant regulators before making a decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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