Terra’s native LUNA token has now lost 85% of its value and is trading below the $5 mark amid an ongoing collapse of its algorithmic stablecoin UST, which saw its value drop below $0.35 following a short rally.

Cryptocurrency markets declined in April, with Bitcoin and Ethereum closing the month down 17.3% and 16.9% respectively. These drops are a result of continued macroeconomic uncertainty following the war in eastern Europe and accelerating inflation figures throughout the world.

Coinbase has reported first-quarter results that missed analysts’ revenue estimates after the bell.  The cryptocurrency exchanges revenue dropped to $1.17 billion, compared to analysts’ average estimate of $1.5 billion.

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Top stories in the Crypto Roundup today:

• Terra’s LUNA Plunges 85% as UST Stablecoin Collapses
• Bitcoin Spot Trading into USD Dropped 26% in April
• Coinbase Misses Q1 Revenue Estimates
• Sponsored: Get 5 BUSD & Stand a Chance to Win 1 Bitcoin in Token Voucher with Binance Card!

Terra’s LUNA Plunges 85% as UST Stablecoin Collapses

Terra’s native LUNA token has now lost 85% of its value and is trading below the $5 mark amid an ongoing collapse of its algorithmic stablecoin UST, which saw its value drop below $0.35 following a short rally.

UST works with LUNA to maintain its peg to the value of the U.S. dollar using a set of on-chain burn and mint mechanics. These mechanics were created to ensure traders can always swap $1 worth of UST for $1 worth of LUNA.

LUNA’s freefall puts its market capitalization below that of UST, which potentially throws the foundation of the stabilizing mechanism into jeopardy. A Terra bank run could now mean some users are no longer able to redeem their $1 of UST for $1 of LUNA.

The collapse comes after the Luna Foundation Guard (LFG) deployed all of its Bitcoin reserves meant to back the stablecoin. Professional market makers were said to be using the BTC reserves to defend UST’s dollar peg on protocols like Curve, which allow traders to swap between UST and other currencies.

Terra’s co-founder Do Kwon has suggested he will soon announce a “recovery plan” for UST, and has asked investors to “hang tight.”

Bitcoin Spot Trading into USD Dropped 26% in April

Cryptocurrency markets declined in April, with Bitcoin and Ethereum closing the month down 17.3% and 16.9% respectively. These drops are a result of continued macroeconomic uncertainty following the war in eastern Europe and accelerating inflation figures throughout the world.

As detailed in CryptoCompare’s April 2022 Exchange Review, while spot volumes on centralized exchanges rose 6.89% to $1.73 trillion last month, BTC spot trading into USD decreased by 25.5% to 707,000, the lowest recorded figure for the fiat currency since August 2019.

USDT remained the stablecoin with the largest BTC volume in April, with 3.18 million BTC traded. Japanese yen and Euro to BTC volumes also declines last month by 19.7% and 23.3% respectively.

The fall in Bitcoin spot volume traded into fiat currencies could be explained by a surge in popularity of stablecoins, as investors look to take advantage of yield opportunities in the space.

Dig deeper into spot market and futures trading volumes using CryptoCompare’s Exchange Review. Read the full report using the link below.

Coinbase Misses Q1 Revenue Estimates

Coinbase has reported first-quarter results that missed analysts’ revenue estimates after the bell.  The cryptocurrency exchanges revenue dropped to $1.17 billion, compared to analysts’ average estimate of $1.5 billion.

The firm’s overall trading volumes have fallen 44% from Q4 of 2021, which has led to a quarterly net loss of $430 million, compared to a profit of $840 million in the fourth quarter. Monthly transacting users (MTUs) on Coinbase were 9.2 million, compared to 11.4 million in the fourth quarter.

Going forward, Coinbase said it expects lower MTUs in the second quarter. The exchange sees subscription and services revenue being “similar to modestly lower,” compared with the first quarter.

Separately, Coinbase filed a shelf registration with the U.S. Securities and Exchange Commission (SEC). In a blog post, the firm wrote that it has no immediate plans to offer securities, but added that “by filing the shelf registration statement now, we will be able to offer and sell securities in the future should we choose to do so.”

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