Here's another stat: Over the past month, the entire cryptocurrency market lost over $1T USD in market capitalization; about 50%.
There's different ways one can look at this situation. I take a bit of a grim view, for crypto as a whole. This was a "come to jesus" moment for institutional investors. Remember; Luna was a top 5 coin by market capitalization; over $50B USD in capitalization. Its unclear exactly what happened, but the prevailing thesis right now is that it was an "attack"; a valid one, by an extremely well capitalized entity, which played within the rules of the game.
This wasn't a loss of faith; it was a failure of technology. The rules were bad; and scarily similar to the rules all coins play by. A loss of faith can stay isolated to a single security; but a much more fundamental failure, like this, is a mark against the asset class. Now, investors will look across the entire ecosystem and start questioning whether any coin is safe. The technologists will say "BTC, ETH, they're proven, they're safe", and they're not wrong, but they also said the same thing about Luna.
What I think we'll see is: the crypto ecosystem will enter a depression over the next 12 months. Larger coins (BTC/ETH) will stabilize. Most other coins will struggle; and with their prices in a depressed state, they become tempting targets for attack by well-capitalized entities. We'll probably see more attacks like this one; not just against algorithmic stablecoins, but also more traditional consensus compromise attacks. Pressure will be applied to both USDT and USDC; Tether may implode, as many have predicted for a while, and USDC's future is also questionable if Coinbase has financial issues due to a drop in consumer & institutional activity.
In short, I would evacuate any non-BTC/ETH crypto positions. Some people may look at today as the "end of the crash". I think it was a signal; that crypto's Dark Forest security model isn't working; it got big; it developed derivative securities which enable shorting; and now has drawn the attention of well-capitalized entities who can move against chains with no repercussion.
There's different ways one can look at this situation. I take a bit of a grim view, for crypto as a whole. This was a "come to jesus" moment for institutional investors. Remember; Luna was a top 5 coin by market capitalization; over $50B USD in capitalization. Its unclear exactly what happened, but the prevailing thesis right now is that it was an "attack"; a valid one, by an extremely well capitalized entity, which played within the rules of the game.
This wasn't a loss of faith; it was a failure of technology. The rules were bad; and scarily similar to the rules all coins play by. A loss of faith can stay isolated to a single security; but a much more fundamental failure, like this, is a mark against the asset class. Now, investors will look across the entire ecosystem and start questioning whether any coin is safe. The technologists will say "BTC, ETH, they're proven, they're safe", and they're not wrong, but they also said the same thing about Luna.
What I think we'll see is: the crypto ecosystem will enter a depression over the next 12 months. Larger coins (BTC/ETH) will stabilize. Most other coins will struggle; and with their prices in a depressed state, they become tempting targets for attack by well-capitalized entities. We'll probably see more attacks like this one; not just against algorithmic stablecoins, but also more traditional consensus compromise attacks. Pressure will be applied to both USDT and USDC; Tether may implode, as many have predicted for a while, and USDC's future is also questionable if Coinbase has financial issues due to a drop in consumer & institutional activity.
In short, I would evacuate any non-BTC/ETH crypto positions. Some people may look at today as the "end of the crash". I think it was a signal; that crypto's Dark Forest security model isn't working; it got big; it developed derivative securities which enable shorting; and now has drawn the attention of well-capitalized entities who can move against chains with no repercussion.