In recent days bitcoin, the bellwether of the crypto market, has been hit by a blow to the crypto market. The chief reason for this is stablecoins. Bitcoin plunged earlier this week to a 52-week low of $25,000, a price that has not been seen since December 2020. Despite the fact that demand for the so-called “digital gold” has since rebounded, at the time of writing, the price of this cryptocurrency was still trading at around $30,000. Although there are some important lessons to be learned from the recent, massive market volatility, at the heart of which are the problems of TerraUSD (UST). Having lost more than 95% of its market cap since last weekend, this once-popular stablecoin has imploded in a matter of days.
On defi ecosystem, the best metric to measure volatility of crypto currencies is ETH Price action. The price of Ethereum token influences the defi markets as well as various Defi Paltform tokens. The following chart shows the ETH Price action starting May 9th 2022, the fateful day on which Terra’s UST started depegging. The price of ETH dropped around 15% on 12th May when Terra’s LUNA started imploding and pulling ETH & BTC pricing along with it to the abyss.
Since May 9th 2022, the Markets are very volatile and pulling the ecosystem down along with them. Many alt tokens are loosing their value upto 90% in the past 6 months and causing heart burns to the HODLers. Let us look how SUSHI performed during the market volatility.
The above chart shows the number of swaps performed that involved SUSHI tokens across three blockchains – Polygon, Harmony and Ethereum. Though SUSHI Swap was launched on Ethereum, UST was imploding on Etheruem and LUNA token was burning Terra in to ashes the most number of SUSHI swaps were noticed on Harmony blockchain.
On May 13th 2022, roughly 2,000 swaps were observed across all distributed exchanges of Harmony blockchain. And the 2 days before May 13, more than 1,000 swaps per day were observed. This was an abnormal number of transactions on Harmony blockchain when there was a storm on Ethereum & Terra land!