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It has been five months since the Terra ecosystem collapsed when tens of billions of dollars in value disappeared from the crypto-economy within days of May 7. Terra’s new Phoenix blockchain managed to restart the ecosystem to some extent 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.
The fallout of the Terra ecosystem was a dark day for the crypto community when Terra’s stablecoin terrausd (UST), now known as UST classic (USTC), decoupled 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. Before the fallout, luna held the seventh position in terms of crypto market capitalization, and on April 28, Terra’s native crypto assets were trading at $88 per coin.
Exactly one day before Terra’s stablecoin was depegged, USTC entered the top ten crypto asset positions by market cap. Furthermore, in terms of TVL in defi, Terra had the second largest TVL below Ethereum (ETH) with approximately $29.29 billion held on April 29, 2022. Today is a completely different story and the Terra ecosystem is a shell of what it used to be five months ago.
For example, LUNC is trading for less than a US penny at $0.00025948 per unit, which is much lower than the $88 per coin recorded on April 28, and much lower than the coin’s all-time high of $119 per unit recorded two weeks prior. As for the new Terra Phoenix blockchain’s native asset, which now goes by the name luna (LUNA), it is down 86.2% from the $18.87 all-time high recorded five months ago. However, the Terra Phoenix chain’s defi TVL has seen growth over the past five months as it has grown by 12,151% since the end of June.
At that time TVL was $350,174 and since then it has grown to $41.55 million. While the Terra classic chain was worth $29.29 billion last April, it is now just under $10 million today at approximately $9,493,635. While Astroport and Terraswap have about $3.5 million, the Anchor lending protocol has about $1.6 million.
On the Phoenix chain, in terms of TVL held in defi, decentralized exchange (dex) app Astroport has 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 Terra Bridge once had $1.4 billion during the first week of April, Terra Bridge today has a value of about $132 million.
In terms of non-fungible token sales, the new Terra chain’s sales data is not as well documented as the classic chain’s pre-collapse NFT sales. Despite the extremely low number of sales, the Terra Phoenix chain is supported by more than half a 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 are approximately $2.18 billion as of October 16, 2022, at 3:00 p.m. (ET).
Terraclassicusd (USTC) is trading for more than a US penny today, at $0.03 per unit on October 16, 2022, with a market cap of about $378.49 million. The statistics show that at least for today, the crypto market values USTC, LUNA and LUNC at approximately $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 that LUNC and USTC used to be worth before the blockchain fallout on May 7, 2022. In fact, the USD value of LUNA, LUNC and USTC are currently 94.82% less than LUNC’s and USTC’s US dollar value prior to Terra’s market crash.
What do you think of the current state of the Terra blockchain ecosystem five months after the stablecoin depegging event and the classic ecosystem collapse? Let us know what you think about this topic in the comments section below.
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