Since last week’s Terra implosion and the demise of the blockchain project’s native token LUNA — and the algorithmic stablecoin terrausd (UST) — crypto tokens based on the Cosmos ecosystem have seen significant losses. In June 2016, the Cosmos’ top coins had a combined value of $61.6 billion. The Cosmos economy, which has dropped to $15.2 billion, has seen a significant drop in its value since that time.
Terra’s Fallout Stirs Cosmos Token Ecosystem
Terra, a Cosmos-based cryptocurrency, is built on the Cosmos SDK, Tendermint and Inter-Blockchain Communication protocol IBC. Terra’s network has a native token called LUNA and a suite of algorithmic fiat-pegged tokens such as terrausd (UST).
Last week, UST lost its $1 parity and after the de-pegging event, LUNA’s value dropped well below a U.S. penny per unit. Terra’s fallout not only rippled across the crypto economy, but it wreaked significant havoc across the Cosmos ecosystem tokens built with the open-source Tendermint protocol.
All Cosmos-based crypto assets totaled $61.6 billion on March 7, 2022. At the time, terra (LUNA) was changing hands on that day for $79.55 per LUNA, in contrast to today’s price of $0.00020932 per unit. The value of LUNA decreased 99.9997% over the past 2 months.
Cronos (CRO), which was purchased for $0.38 in March, changed hands two months later for $0.19 today. Cosmos (ATOM), which traded at $28.95 an unit on March 7, was trading for $11.27 each coin today. CRO is the biggest Cosmos ecosystem token trader with a market cap of approximately $4.95 billion. LUNA, however, was once the leading Cosmos-based token two months ago.
ATOM is currently in the second position, with a $3.2 billion market value. LUNA holds third place with its $1.44 trillion market cap. Other notable Cosmos ecosystem tokens that follow LUNA’s market valuation include thorchain (RUNE), osmosis (OSMO), and kadena (KDA).
RUNE traded hands two months ago for $4.36 per unit. On March 7, RUNE is now trading at $3.23 per unit. Osmosis traded for $9.89/unit on March 7th, but today trades at $1.64/unit. Similar to Osmosis, Kadena (KDA), was traded for $6.07/unit two months ago. On May 16, its price per KDA has dropped to $2.96.
Cosmos Tokens Besides Terra’s LUNA Increased More Than 28% in Value Collectively Since May 12
Terra caused significant damage to Cosmos’ ecosystem. The Cosmos lost over 75% of its USD value due to this fiasco. The same can be said about the decentralized finance (defi) sector, as Terra’s demise rattled defi, and over $100 billion total value locked in defi was either removed voluntarily or liquidated.
Although the Terra implosion did take a toll on Cosmos’ token ecosystem, the majority of value that was lost in the past two weeks occurred last week. The market value of the Cosmos token was $11.8 billion on May 12, 2022. This is actually how the Cosmos economy has been growing.
The Cosmos token ecosystem has increased in value by 28.81% since May 12, but the value increase did not go near Terra’s LUNA. LUNA traded for $0.013 on May 12 which was 98.35% lower than the current price of LUNA.
What do you think about the impact Terra’s implosion had on the Cosmos-based token economy? Comment below and let us know how you feel about the subject.
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