After the last week’s Terra collapse and the loss of the native token of the blockchain project LUNA — as well as the algorithmic stablecoin, terrausd (UST) -cryptocurrency tokens that were that are based upon Cosmos’ platform Cosmos ecosystem have suffered massive losses. In the past two months the most valuable Cosmos ecosystem coins had a value of $61.6 billion. Since this time Cosmos’ Cosmos economy has suffered losses of over 75% of its value, reducing by $15.2 billion.
Terra’s Fallout Incites Cosmos Token Ecosystem
This blockchain initiative Terra has a Cosmos-based blockchain that is based on the consensus protocols Tendermint and the Cosmos SDK as well as the Inter-Blockchain Communication protocol (IBC). Terra’s network comes with its own native token, known as LUNA as well as a variety of algorithmic fiat-pegged tokens , such as the terrausd (UST).
This week, UST lost its $1 parity, and following the de-pegging the value of LUNA dropped below the value of a U.S. penny per unit. The impact of Terra’s fallout did not just ripple across the crypto industry however, it also caused massive havoc on the Cosmos ecosystem of tokens created with the free-of-cost Tendermint protocol.
For example, on the 7th of March 2022, all Cosmos-based crypto assets were in the amount of $61.6 billion. At the time the price of Terra (LUNA) changed hands at $79.55 per LUNA. This was in contrast to today’s value which is $0.00020932 for each unit. LUNA has decreased by 99.9997 percent of its value in the last two months.
Cronos (CRO) traded hands for $0.38 just two months ago. today on the 16th of May 2022, the coin is traded at $0.19 in coins. Cosmos ( ATOM) was traded at $28.95 for a single unit in March, and as of today, one ATOM trades at $11.27 for each coin. Although LUNA was the most popular Cosmos-based token in the last two months, today the biggest Cosmos blockchain token market capitalization is owned by CRO with a market cap of approximately $4.95 billion on Monday.
ATOM is currently in the second-largest position thanks to the $3.2 billion market value. LUNA is the third largest Cosmos ecosystem token thanks to the $1.44 billion market capitalization. Other important Cosmos ecosystem tokens following the LUNA market value include the cryptocurrency thorchain (RUNE) as well as Osmosis (OSMO) and Kadena (KDA).
Two months ago, on March 7 RUNE traded the hands of its customers at $4.36 per unit. Now, on May 16 the price was approximately $3.23. Osmosis was trading at $9.89 for each unit as of March 7 but today , it is trading for $1.64 every unit. In the same way the kadena (KDA) was traded for $6.07 per unit just two months ago. On May 16, the cost for KDA has been $2.96.
Cosmos Tokens Other Than Terra’s LUNA increased by 28% in Worth From May 12
The Terra scandal caused a lot of harm on the Cosmos ecosystem which led to it losing over 75% of USD value since then. Similar can be said regarding the financial decentralization (defi) industry, since Terra’s loss caused a ripple effect in the defi and more than $100 billion of value by defi has been either rescinded involuntarily or liquidated.
The Cosmos token ecosystem suffered a blow from the Terra collapse, the bulk of the losses in the last two months occurred the week before. In actuality it appears that the Cosmos ecosystem has been growing since May 12 2022 and the market’s valuation was $11.8 billion on that day.
It is reported that the Cosmos token ecosystem grown its value 28.81 percent since the 12th of May however, the value growth was not as high as the value of Terra’s LUNA. The 12th of May LUNA trades at $0.013 that’s 98.35 percent less than the price LUNA is trading for at present.