Bitcoin (BTC), ethereum (ETH), and the broader crypto market experienced a sharp correction today after the terraUSD (UST) stablecoin collapsed, and an inflation report in the US revealed higher-than-expected price rises.
Earlier in the day, Terra (LUNA) founder Do Kwon finally took to Twitter again, floating ideas for how the algorithmic stablecoin terraUSD can be saved after losing its US dollar peg.
âBefore anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before UST can start to repeg. There is no way around it,â Do Kwon wrote, suggesting adopting a community proposal that would increase minting capacity in an effort to âabsorb the UST more quickly.
The collapse in the UST price today comes after the coin trimmed some losses yesterday, as more capital was deployed to defend its USD 1 peg. However, the recovery did not last long, with UST again falling hard in the market by Wednesday morning UTC time.
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