Cryptocurrencies
Ether and Altcoins Lead Crypto Rout as Terra DeFi Fallout Deepens
- Solana, Avalanche and Polkadot prices tumble as much as 20%
- Bitcoin drops less as largest cryptocurrency serves as a haven
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It’s an all-round sea of red for nearly everything in crypto, with altcoins such as Ether, Solana and Avalanche taking a beating. Traders are partially stumped, but for Ethereum, the signs of a lack of demand have been building for quite some time.
The impact of the collapse of Terra, a blockchain ecosystem that supported one of the biggest experiments in decentralized finance, knocked an already bearish market into wild contagion this month. While Terra’s operators had passed a revival plan to start afresh on a totally new blockchain on Wednesday, investors in the rest of DeFi were less than convinced. A glitch in the process to make the Ethereum network less energy intensive added to the concern.