The last few days have been hell for the crypto market, and that’s a problem when you consider that crypto and NFTs are two sides of a coin; here’s how the crypto crash is affecting Terra NFTs.
A sudden uptick in daily trading volume
TerraUSD (UST) is the stablecoin associated with Terra, and amid the collapse of this coin with its related token, LUNA, a considerable amount of investors have had to deal with a conundrum. Stay loyal to the blockchain and ecosystem they adopted because they believed in it or take advantage of unprecedented price discrepancies to make massive profits.
Admittedly, Ethereum is the dominant blockchain for NFT projects, but the dominance of this blockchain has led to the rise of a host of other blockchains that offer products addressing the shortcomings of the dominant blockchain, such as slow transaction times, expensive gas fees, and the likes.
Over the last few days, projects built on Terra have witnessed massive spikes in daily trades as a handful of traders have realized that there’s a lot of money to be made thanks to the price discrepancies brought about by the price crash.
Terra has a healthy number of successful NFT projects listed on its ecosystem, and this has led to constant price changes as NFT projects try to stay one step ahead of the rapid inflation of projects in the $LUNA ecosystem. Some of the most successful Terra NFT collections include Hell Cats, Galactic Punks, Terra World, Luna Bulls, and Derby Stars.
What do the numbers look like?
In the history of Random Earth, the platform has never recorded more than 11,000 LUNA traded in 24 hours, but this changed on Wednesday as 438,665 LUNA was traded on the platform on May 11.
In the same vein, Knowhere is another Terra NFTs trading hub, and at the time of curating this piece, Knowhere had recorded more than 6,000 LUNA worth of trades in a single day. Looking at the total value of Terra NFT trades on May 11 paints a more interesting picture; its daily trading volume hit 3.1 million UST. Amazingly, a day before this trade surge, the total volume of Terra NFTs that changed hands was 384,769 UST.
@ryanbethencourt shared the following on Twitter, “One of the most fascinating things I’ve been watching in the $LUNA ecosystem is the rapid repricing of NFTS on @randomearth_io as the value of Luna drops. There’s some great NFT art on LUNA, but dramatic inflation (in LUNA) as the ecosystem deflates & tries to retain its $ value.”
Terra NFT’s last stand
The last few days have been a fight for survival for Terra NFTs and the broader LUNA ecosystem. Investors are preparing for worst-case scenarios, and questions have been asked about whether or not the value of Terra NFTs will hold if the ecosystem” falls into a death spiral.”
After all, is said and done, time will tell whether or not Terra NFTs will survive this downturn; for now, the general public can only watch and follow developments as they unfold.
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