Terra crashed in May 2022 and while this statement is true when it comes down to the stablecoin TerraUSD (UST) the rest of Terra’s ecosystem on its blockchain survived. Among those survivors were lending protocols, NFT marketplaces, and NFT collections to just name a few examples.
How did the remaining projects deal with the difficult situation and how are they going to continue?
Polygon faced competition
Over 50 different projects migrated to Polygon. Polygon is a second-layer solution for Ethereum that is fueled by its native token called MATIC. There were also other candidates like VeChain and Kadena who started to actively engage with existing projects that are based on Terra’s blockchain, but it seems their offer wasn’t convincing.
Polygon attracts a larger audience and offers access to battle-proven technology that is used by millions of DeFi users worldwide. Needless to say, this is also the case because it has access to Ethereum which is still the largest smart contract platform in the world.
Notable projects that migrate are OnePlanet and Derby Stars. With the former being an NFT marketplace, over 48 NFT projects and more than 90 different collections found a new home on Polygon. Part of this success is due to the work of Ark*One, a project focused on helping with the migration to Polygon which also provided funding to the supported projects.
An important step for the industry
The crypto industry is under heavy pressure at the moment. The market is contracting due to difficult economic circumstances. The war in Ukraine, Europe’s energy crisis, the record-breaking inflation, and the reaction of the Fed is weighing heavy on crypto. The crash of TerraUSD and the recent lending crisis of CeFi lenders are just the tip of the iceberg.
With the migration of those projects from one blockchain to another, the industry shows that there is not only risk but also real chances. Mitigating a disaster like the downfall of Terra is never easy. With the continuation of projects that spend time and resources to develop actual products and attract users a spark of hope has returned.
Both NFTs and blockchain gaming are believed to be growth markets in the next five years. With the opportunity to continue to grow on Polygon it is now possible for these projects to compete in the market and see if they have what it takes to stand the test of time.