See the section entitled “Stablecoins’ role within the crypto-asset ecosystem” in Adachi, M. et al. (2022), “Stablecoins’ role in crypto and beyond: functions, risks and policy”, Macroprudential Bulletin, ECB. 15. Less than 10% of the total crypto-asset market at present. 16. In September 2022. 17. These are collateralised stablecoins. 18.
Holders could redeem USD 1 of Terra for USD 1 worth of the crypto-asset Luna, which would be issued to meet demand. 19. TerraUSD’s market capitalisation fell from around USD 18 billion to less than USD 2 billion and, as at 30 November 2022, stood at just USD 209 million. 20.