Following the recent demise of the Terra ecosystem, many wondered if the new chain would succeed. So far, that’s not the case, and DeFi’s growth has been denied. The damage caused by UST and LUNA has not been forgotten, so it seems that everyone is giving up on this project so far.
Terra’s DeFi doesn’t go anywhere
As is currently known, there is no reason to question the Terra network or the underlying technology of Terra2. There is no change in the developer approach and building a decentralized finance solution in this ecosystem. After all, Terra represents tens of billions of dollars in totals locked so long ago. The UST and LUNA scandals, and the alleged involvement of Terraform Labs in these procedures, have all been wasted.
Therefore, the new network has been running for a while, and it is expected that money will flow to Terra2. However, the community seems to have abandoned the network as DeFi TVL is already down. It temporarily peaked above $ 25 million, has fewer buckets compared to previous Terra glory, and is now heading back to the low $ 20 million range.
In addition, the popular solutions that existed in the original network still exist today. Projects such as Astroport, Risk Harbor, Terraswap, Phoenix DEX all exist and are described. But this week they all lost TVL, down from 2.4% to more than 56%. The reliability of Terra2 is very low and it doesn’t seem to improve immediately. Moreover, it seems unlikely that networks will play a major role in decentralized finance again.
LUNA has not recovered either
DeFi issues don’t necessarily indicate the health of the project, but there’s little excitement about Terra and Terra2 today.Look at the worth You can’t be overly satisfied with LUNA, not LUNC or LUNA Classic. The asset trades at $ 1.72, far from the record high of $ 144 on other networks. Such high value does not seem to reach the new assets of the Terra chain, as the public perception of this project is by no means great.
Overall, Terra seems to have lost momentum in the crypto and blockchain arena. We still have time and room to build this technology, but we must admit that there is a significant discrepancy in trust. Regaining that trust can be very difficult, if not impossible, after everything has happened. It’s interesting to see what the future holds for Terra and LUNA, but so far the situation isn’t very good.
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