Crypto On May 13: Most Top Tokens Gain, Luna Crashes To $0

After a prolonged bloodbath, the cryptocurrency market recovered Friday as top tokens including Bitcoin and Ethereum finally gained some momentum. While most tokens were trading in the green, Terra LUNA crashed to $0.

The global market cap was up 9.84% at $1.30trillion, as of 5.16 a.m. ET, CoinMarketCap data showed.

Bitcoin was up 10.10% at $30,493. Ethereum, too, rose 10.68% to $2083.

"Bitcoin bears need to hold the price below $30,000 on May 13 to secure a $260 million profit," wrote Marcel Pechman in CoinTelegraph Thursday. On the other hand, the bulls' best case scenario requires a 10.7% gain from the current $28,900 to the $32,100 zone to limit their losses to $150 million."

According to WazirX's analysis, the last 24 hours saw huge buying volumes for BTC despite the market sentiment remaining in the extreme fear zone.

Barring a slight dip in USD Coin and Binance USD, all other top 10 tokens gained. Meme cryptos Dogecoin and Shiba Inu too surged.

Terra USD, the stablecoin that caused the recent market crash, however, continued to dip. It was down 74.20% at $0.1639 with its sister token trading at $0.

Stablecoins are digital tokens pegged to the value of traditional assets, such as the U.S. dollar. They are tagged as safe havens in times of turmoil in crypto markets and are a common medium of exchange, often used by traders to move funds around and speculate on other cryptocurrencies.

"Huge volatility in the markets overnight as the collapse of the Terra network left a ripple effect across the entire crypto ecosystem," CoinDCX research team said. "With rate hikes looming and quantitative tightening set to come out in full swing for the remainder of 2022, the prevailing macroeconomic outlook does appear bearish, at least for the immediate to medium term."

"Market corrections may not always necessarily be negative — they do result in asset valuations reverting closer to fair levels, and foster an environment where only the most value-accretive projects prevail," the Indian exchange told International Business Times.

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.