Staked Ether Discount After Terra Collapse a Sign of Liquidity Crunch in Crypto

Data shows that staked ether and ether traded at parity up until May 7, when Terra’s stablecoin, UST, started to wobble from its $1 peg. Since then, stETH has been unable to recover to the full ETH price. On May 12, when UST dropped to 7 cents, stETH-ETH exchange ratio fell to as low as 0.955, and ever since then, staked ether has traded at a discount of 2-3%.