SPRING-CLEAN: UST/Terra Collapsing

Don’t try to catch a falling knife…or at least not with both hands at once. Today’s PTON earning came as final confirmation of the earnings play that saw a major correction of Web2 market valuations leading SPY to test new resistance levels as we are surely heading to this years halftime. Activity across DEX has seen a spike this week, coinciding with the UST, the 3rd largest stablecoin, breaking its USD-peg. We project an increase in transaction volumes on DEX over the coming days, as investor will want to protect from exchange risk and regulatory uncertainty of stablecoins that are valued at close to Bn 200 USD market cap. This is all the more incentivized by historically low prices for widely circulated ERC20-tokens. The second half of the week is also encouraging for NFT/smart contracts, particularly on the Polygon chain following META annoucements on integrating NFTs. Following a strong start to the month, second week activity was muted, albeit sustaining valuations.

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