TerraUSD, a stable coin, hits 16-month low

TerraUSD, a stable coin, hits 16-month low

The collapse of TerraUSD, a so-called stable coin, underscored the strain on the criptocurrency markets, as it fell to its lowest in 16 months on Thursday.

The world's largest coin dropped as low as $26,970, to its lowest since December 28, 2020. It lost a third of its value, or $13,000, in the last eight sessions.

The November high of $69,000 was reached in the year 2021, as it surged to its all-time high of $69,000.

The recent decline of the Nasdaq mirrors the recent decline of tech stocks, as traders say it has lost 6.4% this week.

Another factor at play is the spectacular collapse of TerraUSD, once the world's third largest stable coin, which broke its dollar peg this week to fall as low as 30 U.S. cents, causing ructions in the industry.

Market players are still weighing the fallout of its collapse to find out if any major companies or investors have been badly hurt, a possible clue to wider contagion.

The world's second largestcurrency, Ether, fell more than 10% on Thursday, to a low of $1,833, its lowest since July 2021, the world's second largestcurrency.