Skip to main content

While Its Lost 94% in Value Since the Collapse, Terra’s Fractured Ecosystem Is Still Worth $2.5 Billion

While Its Lost 94% in Value Since the Collapse, Terra's Fractured Ecosystem Is Still Worth $2.5 Billion

It’s been five months since the Terra ecosystem collapsed as tens of billions of dollars in value disappeared from the crypto economy in a matter of days after May 7. Terra’s new Phoenix blockchain managed to restart the ecosystem to some degree and since the end of June, Terra’s total value locked (TVL) in decentralized finance (defi) has increased from $350,174 to today’s $41.55 million.

A Look at Terra’s Blockchain Ecosystem Over the Last 5 Months Since the Collapse

The Terra ecosystem fallout was a dark day for the crypto community when Terra’s stablecoin terrausd (UST), now known as UST classic (USTC), depegged from the token’s $1 parity. Before the collapse, Terra’s luna, now known as luna classic (LUNC) was a top ten crypto asset by market capitalization and Terra’s stablecoin also held a top ten position. Prior to the fallout, luna held the seventh position in terms of crypto market caps, and on April 28, Terra’s native crypto asset was trading for $88 per coin.

Precisely one day before Terra’s stablecoin depegged, USTC made it into the top ten crypto asset positions by market capitalization. Furthermore, in terms of TVL in defi, Terra had the second largest TVL under Ethereum (ETH) with approximately $29.29 billion held on April 29, 2022. Today is a totally different story and the Terra ecosystem is a shell of what it used to be five months ago.

For instance, LUNC is trading for less than a U.S. penny at $0.00025948 per unit which is a lot lower than the $88 per coin recorded on April 28, and much lower than the coin’s all-time high at $119 per unit recorded two week’s prior. In terms of the new Terra Phoenix blockchain’s native asset which now leverages the name luna (LUNA), it’s down 86.2% lower than the $18.87 all-time high recorded five months ago. The Terra Phoenix chain’s defi TVL, however, has seen growth during the last five months as it has swelled by 12,151% since the end of June.

At that time, the TVL was $350,174 and since then it has grown to $41.55 million. While the Terra classic chain held $29.29 billion last April, it’s now just under $10 million today at approximately $9,493,635. While Astroport and Terraswap have roughly $3.5 million, the defi lending protocol Anchor has around $1.6 million.

On the Phoenix chain, in terms of TVL held in defi, the decentralized exchange (dex) app Astroport holds around $27.55 million, followed by Risk Harbor’s $14.76 million. Stader, Spectrum Protocol, and Eris Protocol follow Astroport and Risk Harbor respectively in terms of TVL statistics. Furthermore, while the Terra Bridge once held $1.4 billion during the first week of April, today the Terra Bridge holds around $132 million in value.

In terms of non-fungible token sales, the new Terra chain’s sales data is not documented as well as the classic chain’s NFT sales before the collapse. Despite the extremely low number of sales, Terra Phoenix chain is supported by more than a half dozen NFT marketplaces. In terms of the total value between the two native coins LUNC and LUNA, Terra’s blockchain assets between the classic and Phoenix chain is roughly $2.18 billion on October 16, 2022, at 3:00 p.m. (ET).

Terraclassicusd (USTC) is trading for more than a U.S. penny today, at $0.03 per unit on October 16, 2022, with a market valuation of around $378.49 million. The statistics show that at least for today, the crypto market values USTC, LUNA, and LUNC at roughly $2.558 billion, and all three of these crypto assets are incorporated into the TVL held on both chains.

While $2.558 billion is a lot for a blockchain ecosystem that collapsed, it’s still a shell of the $49.26 billion in value LUNC and USTC used to be worth prior to the blockchain’s fallout on May 7, 2022. In fact, the USD value of LUNA, LUNC, and USTC today is 94.82% less than LUNC’s and USTC’s U.S. dollar value before Terra’s market crash.

What do you think about the current state of Terra blockchain ecosystem five months after the stablecoin depegging incident and the classic ecosystem’s collapse? Let us know what you think about this subject in the comments section below.



from Bitcoin News https://ift.tt/5fOTzIh
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more