The digital currency market: Why is it witnessing a global collapse in the value of currencies that are considered stable?

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May 13, 2022

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Cryptocurrency markets are reeling after a widely used currency lost 99 percent of its value, leading to a significant decline in the value of a “stable” cryptocurrency.

The terra luna coin fell Earth Moon Digital from a high of $118 last month to $0.09 on Thursday. This drop has indirectly affected a digital currency pegged to the dollar, TerraUSD, which is usually stable.

This led to anxiety among investors, who rushed to get rid of their holdings of digital currencies, which in turn led to the decline in the market for those currencies.

The companies behind stablecoins are trying to ensure that those currencies remain equal in value with stable assets such as the US dollar – meaning that one digital currency is equivalent to one dollar, for example.

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