It originally fell by $4,000 to roughly $43,000, as reported yesterday, but the situation exacerbated today with another drop to $41,000.

Related: Crypto market roiled as Fed intends to shrink balance sheet

BTC's price dropped to its lowest level in more than three months. Altcoins are in no better shape, with Ethereum trading around $3,200 — only two days earlier, the second-largest cryptocurrency was at $3,800. Overall, the market worth has dropped about $300 billion in two days and is currently far below $2 trillion.

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Over-leveraged traders suffered as a result of the increased volatility. According to Coinglass (previously Bybt) data, total daily liquidations are just short of $500 million.

The number of traders liquidated is estimated to be over 130,000, with the highest single liquidation order – worth more than $5 million – placed on Bybit.

Terra will spend $139 million on DeFi initiatives to boost UST

The ambitions are in line with Terra founder Do Kwon's desire to establish UST as a prominent player in the crypto industry.

The plan, however, must be approved by the Terra community in a vote of governance participants, which will most likely take place at a later date.

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The paper titled: How UST and LUNA worth $139 will be used on various DeFi platforms contains the specifics of how UST and LUNA worth $139 will be utilized on different DeFi platforms. Part Three of UST Goes Interchain: Degen Strats.

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Terra has chosen a few partner projects where it proposes to deposit up to $50 million to support the stability of these protocols, according to the proposal.

Terra said that with this step, it intends to add UST use cases to Ethereum DeFi.

These goals are consistent with Terra Founder Do Kwon's prior statements, in which he said that he wants to see UST become a prominent stable in the crypto market.

TerraUSD (UST) is now placed fourth in the list of major stablecoins, with a market worth of $10.44 billion. Terra USD is trailed by Tether USDT ($78.44 billion), USD Coin USDC ($43.2 billion), and Binance USD ($14.4 billion).

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Here's how Terra intends to spend the $139 million

1. Tokemak (Ethereum)

Tokemak, a DeFi liquidity provider and market maker, is one of the new DeFi initiatives where Terra intends to deposit $139 in UST.

It plans to invest $50 million in UST for at least six months to fund the UST Pair Reactor. Aside from the standard TOKE benefits, the Terra community may use the asset to vote in the LUNA Token Reactor.

2. Fuse Rari (Ethereum)

In terms of UST deployment scale, the next initiative is Rari Fuse, an unregulated lending and borrowing platform that will get $20 million in UST money over the course of six months. UST aims to be the cheapest stable to borrow from on Fuse.

Convex Finance, a yield aggregator, will receive $18 million in UST for six months. Terra will award LUNA bonuses to liquidity providers that employ UST on various Convex pools.

3. OlympusDAO (Ethereum, Solana, Polygon)

Olympus, an OHM-based decentralized reserve money system, is the next project to receive UST financing. The total amount suggested for deployment is $1.425 million in UST. OlympusDAO is already collaborating with Terra, and it plans to launch gOHM, an encapsulated version of OHM, on its blockchain.

Related post: The adoption of TerraUSD (UST) supports LUNA's rise to a record all-time high

The fact that Olympus will introduce OlympusPro to Terra protocols is a crucial feature of this collaboration. It also requires the Terra community to collaborate with Olympus DAO.

4. The InvictusDAO (Solana)

Invictus is an Olympus fork with decentralized reserve money on the Solana network. It has emerged as a potential player in putting its treasury to work. Terra intends to expand its influence on Solana by issuing IN/UST bonds with a $250k investment. Frax Finance (FRAX) will match Terra's investment with $250,000 in Frax.