While many companies were hit hard by the Terra debacle, three NFT industries were relatively unaffected. In particular, Blockchain Gaming, GameFi, and Metaverse showed minimal negative effects and continued to grow. Here’s why. Let’s examine these industries in more detail. What can we learn from Terra’s collapse? Here’s a quick review of the Terra collapse. What was lost?
GameFi
Like Lehman Brothers in 2008, the collapse of Terra was devastating for the cryptocurrency industry. The collapse had a profound impact on non-fungible tokens and decentralized finance. The disaster hit a variety of crypto sectors, including Blockchain Gaming and GameFi. Some sectors, such as Terra, were less affected than others. Below are some of the areas that were impacted by Terra. Read on for a look at which sectors were affected by the collapse of Terra.
The Luna Foundation Guard: This organization has been closely interlinked with the infamous game Terra since its inception. Before the Terra disaster, it was holding $3 billion in Bitcoin, plus over eighty thousand other major coins. However, the guard spent much of its reserves to protect the peg and sold nearly 33,206 bitcoins to save Terra. Now, the guard holds a few hundreds of BTC. In this case, the failure of the Terra network has made GameFi and Metaverse the least affected by the disaster.
Metaverse
The collapse of the Terra network was of similar scale to the 2008 subprime mortgage crisis. While non-fungible tokens and decentralized finance were harmed, blockchain gaming and NFT-related Metaverse tasks fared much better. This report highlights which sectors were least affected by the Terra debacle. The following are some of these sectors. Read on to discover how your crypto portfolio might fare.
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The price of Terra has fallen by more than 99 percent in the last seven days and is currently worth $0.5. Its UST and LUNA are each worth 33 percent less than they were seven days ago. This is not necessarily a good sign. While there are some signs of an upcoming price crash, there are plenty of other reasons to remain calm and wait it out. A large portion of the market is still highly speculative, which means investors should be cautious until they see a more solid picture of the future of Terra.
Decentralized finance
Blockchain gaming projects, including GameFi and Metaverse, managed to evade the worst of the Terra debacle. The average number of completed transactions and the number of unique wallets shows a nearly two-fourth drop in NFTs and a 27% increase in game-related transactions in Q2. In the face of this collapse, however, many investors are still hopeful. According to DappRadar, the collapse of Terra has affected nonfungible tokens more than any other cryptocurrency.
In a study published by DappRadar, crypto market capitalization is the least affected sector by the Terra debacle. The study looked at antithetic metrics such as transaction volume to gauge idiosyncratic engagement in virtual worlds. While DeFi and NFTs were hit hardest by Terra’s debacle, game-related Metaverse projects showed the least impact.
NFT industries not affected by Terra debacle
While NFT industries like blockchain and bitcoin are unaffected by the Terra debacle, firms like Three Arrows Capital, Celsius and Voyager did suffer. These companies had a large stake in Terra, but were unable to withstand the crash. The Terra debacle is similar to the Lehman Brothers collapse in 2008, but non-fungible tokens have not been so lucky. However, some NFT industries such as the decentralized applications space have been spared from the trouble.
The crash of Terra has caused a huge slump in the crypto markets. This collapse has caused a further wave of selling, knocking up to 15 percent off major coins. As a result, stablecoins, which are similar to cryptocurrencies, have been hit the hardest by the crash. The tether stablecoin has fallen almost 50% since Tuesday, but it has been rescued by the withdrawal of $7.6 billion from users.