Crypto Analytics

Terra NFT Market Sees Trading Spike Amid UST Collapse

  • Having never surpassed 11,000 LUNA, the volume on Random Earth increased to 438,665 LUNA
  • Investors are torn between loyalty to LUNA and loss of trust

Although Ethereum is home to some of the most dominant NFTs, at least a dozen other blockchains shape the digital collectibles – including Terra, which collectors have turned to thanks to comparatively lower gas fees.

Amid the collapse of Terra’s stablecoin TerraUSD (UST) and its sister token LUNA, NFT projects (non-fungible tokens) built on Terra have seen a significant uptick in trading as savvy traders seek to capitalize on deep price differentials .

Daily volume of NFT trades on popular Terra marketplaces Random Earth, Knowhere and Luart is the highest since March 1st. according to to data aggregator Flipside Crypto. Terra’s daily NFT volume hit 3.1 million UST ($2.1 million) on May 11, up from 384,769 UST the previous day.

Random Earth and Knowhere also saw their highest trading volumes on May 11th. Having never surpassed 11,000 LUNA, volume on Random Earth surged to 438,665 LUNA ($485,263), while Knowhere reached 6,005 LUNA at the time of publication.

Some of the most traded Terra NFT collections include Galactic Punks, Hell Cats, Derby Stars and Luna Bulls. Twitter user @RyanBethencourt pointed to the rapid reassessment of NFTs, particularly Random Earth, and questioned whether their value would endure if Terra “entered a death spiral.”

Users of another Terra NFT marketplace, OnePlanet, took to Discord to report transaction delays – traders said the digital assets did not appear in their wallets immediately after the purchase was completed.

And those who failed to delist their NFTs in time were promised an investigation by Discord moderators.

A sweep by crypto Twitter showed mixed sentiment among investors. User @PostmanNay claims“All nfts on Terra are now as worthless as the Luna token.”

Another user, @c4chaos, called for compassion for those who may have lost their life savings.

Terra NFT Collection PolyEgg asked Twitter followers on which blockchain to switch to because “it’s not a good idea to keep minting on Terra.” While Solana has been a popular choice, veteran LUNA investors known as “LUNAtics” continue to buy Terra NFTs.

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The Terra NFT Market Sees Trading Spike Amid UST Collapse post is not financial advice.

Source: Crypto News Austria

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