The Terra collapse, in which $60 billion of value evaporated, has already gone down as a defining moment in cryptocurrency history.
TerraForm Labs co-founder Do Kwon maintains the issue boiled down to weaknesses in the UST stablecoin protocol design. However, others have openly called out the project as a scam from the off.
The event triggered an exodus of capital, tanking prices across the board from which the market has yet to recover.
Nonetheless, on-chain metrics show an interesting change in the dynamics of long-term Bitcoin holders resulting from the collapse.
Bitcoin supply held by long-term holders soared
At the end of March, Bitcoin was priced at $47,000 and ticking along despite early warnings of an inflationary spike and trouble in Eastern Europe escalating further.
Moving into May, BTC opened the month at $40,000. But, on May 7, UST began losing its dollar peg price. By May 13, the UST daily close was $0.13, having dipped as low as $0.06 on the day.
As the crisis was unfold
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