Flows of Ether Offshoot Reveal Terras Ripple Effect on Crypto
June 29, 2022, 5:14 PM
The contagion that spread from the implosion of the Terra cryptocurrency ecosystem to Celsius Network and Three Arrows Capital bears similarities to the 2008 global financial crisis.
A new report by blockchain data analytics firm Nansen found that the impact of the collapse of Terras algorithmic stablecoin TerraUSD in May can be determined by tracking stETH, a token that became a popular collateral asset for lending and borrowing in decentralized finance.
Its a ripple effect similar to what happened during the Great Recession, when the financial system fell into turmoil as hedge funds and investment banks were forced to unwind …
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