It was another tough weekend for the cryptocurrency market, driven by bearish volatility. Nevertheless, the values of most cryptocurrencies on the board were seen recovering except for a few. This slow recovery provided an opportunity for the leader of the meme-coins, Dogecoin to take a lead over Terra’s LUNA token.
According to the available data, the value of DOGE has been falling for two weeks now. During the previous week’s bloodbath, DOGE shed 11.39% of its value, from $0.1536 to $0.1361. Despite the sell-off witnessed in the extended crypto market, the market capitalization of DOGE held on above $18.23 billion, however, Terra’s LUNA token could not.
As visible in the picture above, Terra was witnessing a strong downtrend with its value being slashed by almost 12% within the past 24-hours. Additionally, the weekly losses on the token were exceeding 28%, at the time of writing. The current value of the LUNA token was $44.06.
Although the broader crypto market was building up ahead of a U.S. Federal Reserve statement in the mid-week. The values of the largest crypto assets like Bitcoin [BTC] and Ethereum [ETH] noted nearly a 6% increase through the week. DOGE, at the time, led this recovery round in terms of market capitalization.
The anticipated announcement by the Federal Reserve did cause quakes in the crypto market, but the worst sufferers were not Bitcoin or Ethereum. Terra slipped massively over the week by almost 35%, this was from a value of $69.91 to $43.47. This hit in its value could be an effect of the Wonderland fiasco still playing out.
Wonderland grabbed the attention of the crypto participants in the decentralized finance [DeFi] space as 0xSifu exposed its co-founder Michael Patryn being a convicted criminal behind the now-defunct QuadrigaCX crypto exchange. Patryn spent 18 months in the U.S. prison for helping run an identity theft ring called Shadowcrew in the 2000s.
Given the infamous history of QuadrigaCX operating as a sophisticated Ponzi, the links with its members were found disturbing by many. Although the poll carried out by Wonderland co-founder Daniele Sestagalli received mixed results from the community, he decided to call it quits.
Nevertheless, the community members were now rallying to launch a Wonderland 2.0 version with a different DAO structure.
As for Terra, offering a stablecoin in DeFi had a direct impact when Wonderland pulled the plug. Ever since the value of the LUNA token has been descending and was currently down by 21%.
While Dogecoin may not have directly contributed to its growth and it could have been a result of a falling Terra, the asset once again proved to remain strong during the time of uncertainty. DOGE was trading at $0.1379, at the time of press and its market capitalization could be pushed lower by Terra amid recovery.