Gary McFarlaneDeFi Coin (DEFC) is up 12.9% in today’s Friday 13th session as the token rises in line with the wider crypto complex.
After registering a return above 200% since the beginning of May, DEFC is currently priced at $0.39, as buyers jump back into the market after a bruising sell-off across the crypto sector.
As we report elsewhere today, the LUNA saga looks like it has reached its sorry end, with Binance delisting the coin, which means the chances of the TerraUSD (UST) stablecoin doing a Lazarus and coming back from the dead are slim to say the least.
Terra stops its blockchain – will it restart?
The Terra blockchain was turned off yesterday. Then it was announced on Twitter that it had been patched and as soon as a quorum of validators had agreed, it would be back up and running. That happened briefly, only for the chain to later be turned off again. The blockchain had initially been stopped because of fears that the low price of LUNA meant the cost of launching a 51% attack on the chain had fallen to dangerously low levels.
Since then Venus and Blizz (which actually runs on Avalanche) protocols have been attacked. These problems have arisen because of the pause in price feeds provided by Chainlink’s oracle, with bad actors using the low price of LUNA to attempt to empty certain protocols of available collateral.
The main protocol on Terra however is Anchor and with the chain inoperative it must be only a matter of time before that protocol collapses and the investors suffer losses.
Terra was the third-largest stablecoin ecosystem in crypto – but not any longer.
Instead of trying to rescue UST and LUNA, devs are apparently looking at issuing a new token in a forlorn attempt to “reconstitute” the blockchain and the “value” represented by the community or users and devs, according to a twitter post from the official terra account.
Bitcoin bounces off strong support at $28k, lifting all boats
Today’s rally is likely the result of a combination of technical and fundamental factors.
On the technical side, bitcoin bounced off major support around $28,000, established in July last year
Also, the shockwave from the UST fallout may be subsiding which means that on a near term view certain sectors, notably DeFi, were starting to look very oversold.
Overall the DeFi sector is up 16%. DeFi Coin has put on 12.9%, but given its stellar rise over the past week, it is still up more than 200% in what was a dire week for the rest of cryptoland.
DeFi Coin can be bought on PancakeSwap or at brand new decentralised exchange DeFi Swap, where DEFC is the native token.
Elsewhere, the fact that Tether has survived the test in the wake of the uncertainties and weakening confidence in stablecoins caused by the UST collapse, has helped to stabilise sentiment in the markets. Tether had briefly slipped off the peg by trading at 95 cents instead of $1.
In terms of news flow, the market was helped higher by the news that Emirates airline was set to start accepting bitcoin in payment for tickets. In April the airline revealed plans to launch its own NFTs.
With equity markets bouncing, the correlation with crypto remains in place. S&P 500 is up 1.6% at the time of writing and the Nasdaq Composite is up nearly 2.9 at 11.7k.
This article was written for Business 2 Community by Gary McFarlane.
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