The ripple effect from the fall of (LUNAOn May 11, a wide range of cryptocurrency markets saw the TerraUSD (UST), stablecoin, and ). Projects that have any sort of connection to the DeFi ecosystem had seen their prices drop.

Forced selling of (BTCUST) held by a small amount of BTC contributed to the current decline in BTC to $29,000. Analysts fear that DeFi platforms which have liquidity pools primarily made up of UST/LUNA will also collapse.