(Bloomberg) -- Celsius Network Ltd.’s digital token slumped about 20% on Friday as concern increases over the sustainability of the high yields being offered by the lending platform and others in the crypto market in the wake of the collapse of the Terra blockchain. 

Celsius’s CEL token promises “actual financial rewards,” including as much as 30% extra returns weekly, according to its website. CEL was trading at around 53 cents, down 21% in the past 24 hours, according to pricing data site CoinGecko. 

While its unclear what triggered the latest decline, demand for high-yielding lending protocols has slumped since Terra failed in May. The defunct blockchain promised yields as high as 20% to TerraUSD (UST) stablecoin depositors, which had been the main factor driving Terra’s growth. Celsius has noted its exposure to Terra, but said earlier it was able to exit Terra’s crisis early on.

Celsius acknowledged the decline in a statement to Bloomberg, while noting that the price is often affected by market factors that are not related to the company’s performance. 

“Looking across the entire crypto sector, we are undoubtedly in a crypto winter. The price of all cryptocurrencies have clearly been affected by a general market downturn. We are squarely focused on building for the long-term,” the statement said.

Ethereum blockchain data shows that the largest single digital wallet holding CEL tokens is a wallet belongs to Celsius itself, with more than 184 million CEL tokens, or 26.6% of the total supply in circulation.

©2022 Bloomberg L.P.