Following the Terra blockchain fallout and the great UST de-pegging event, the Terra network ecosystem is now a wasteland of virtually worthless tokens and protocols. While UST and LUNA were both top ten crypto market cap contenders, Terra’s decentralized finance (DeFi) presence was second only to Ethereum in terms of total value locked. Today, the remaining Terra-based token holders and DeFi protocol operators are waiting for a miracle.
Terra’s Token Economy Has Lost 96% of Its Value
There has been a lot of news about how the Terra blockchain fiasco and team handled the explosion of Terraced (UST). Many people know that LUNA, the native token of UST and Terra, has lost a lot of value over the past two weeks. The 24-hour price range of UST is in the range of $0.068 to $0.054 per unit, which is well below the $1 par held before the decline.
LUNA is also very low as it was trading for $72 per coin on May 7, and is now down 99.999849% to $0.00010853 per LUNA. But Terra also had a whole ecosystem of tokens like ANC, MIR, ASTRO, MARS, and others.
The governance token anchor (ANC) for the DeFi protocol is down 96% over the past two weeks, and Astroport’s ASTRO token is down 98%. The MIR of the Mirror Protocol has declined by 80.4% while that of the Pylon Protocol has declined by 96.9% in the last 14 days.
Similarly, the Mars Protocol (MARS) is down 97.6% and the Loop Finance token LOOP is down 98.3% in the past two weeks. Figures on March 7, 2022 show that the Tera ecosystem token was worth $44 billion and today it is down 96.70% to $1.45 billion.
From 2nd largest in DeFi to 33rd — Terra’s DeFi presence has been erased
Terra’s presence in decentralized finance was once huge as it held the second largest Total Value Locked (TVL) of all blockchains in existence. On April 5, 2022, Terra’s TVL in DeFi was $31.21 billion and today, it has decreased to $118.81 million.
In terms of TVL per protocol, each Tera DeFi protocol has lost 90-99%. Applications are ghost towns and block explorers like finder.terra.money show extremely low activity for every Terra DeFi protocol.
The same can be said for applications such as the Terra Name Service (TNS) and non-fungible token (NFT) marketplaces such as Random Earth, Nowhere, Talis, Luart, Curio, and One Planet. Whereas name service domains on TNS were once $16 per name, they now cost $0.91 to register a name.
As far as the NFT marketplace built on Terra is concerned, some markets are still selling NFTs that were once quite expensive, but now the tokens are selling at lower prices. Some NFT collectors have removed their listings and are possibly awaiting the rebirth of Terra. Most of the Terra NFT Marketplaces are ghost towns in terms of activity.
Terra’s Reincarnation Hope
A revival is likely for many Terra community members, as project founder Do Kwon and several other Terra supporters have drawn up a revival plan to revive Terra from the ashes. There are plans to fork the chain and airdrop new tokens to UST and Luna holders on a snapshot prior to the UST de-pegging event.
Currently, the reincarnation motion vote has four more days but the number of “yes” votes has crossed the threshold at 62%. 21.10% abstain from voting, 0.42% voted “no” and 16.48% voted “no with veto”.
What do you think about what’s left of the Terra blockchain ecosystem? Let us know what you think about this topic in the comment section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation or recommendation or endorsement of an offer to buy or sell any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.