Terra NFT Market Sees Trading Spike Amid UST Collapse

  • After never exceeding 11,000 LUNA, the volume on Random Earth skyrocketed to 438,665 LUNA
  • Investors are torn between loyalty to LUNA and loss of confidence

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

Amid the collapse of stablecoin TerraUSD (UST) and its sister token, LUNA, NFT (non-fungible token) projects built on Terra have seen a huge spike in trading as savvy traders look to profit from price gaps deep.

According to data aggregator Flipside Crypto, daily NFT trading volume on popular Terra Markets Random Earth, Knowhere, and Luart is the highest since March 1. Terra’s daily NFT volume on May 11 reached 3.1 million UST ($2.1 million), up from 384,769 UST the previous day.

Random Earth and Knowhere also observed their highest trading volume days on May 11. After never breaking above 11,000 LUNA, volume on Random Earth has skyrocketed to 438,665 LUNA ($485,263), while Knowhere has hit 6,005 LUNA at press time.

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 revaluation of NFTs, especially on Random Earth, and wondered if their value would hold if Terra were to “fall into a death spiral”.

Users of another Terra NFT marketplace, OnePlanet, took to Discord to report transaction delays — traders said digital assets weren’t immediately appearing in their wallets after the purchase was closed.

And those who couldn’t delete their NFTs in time were promised an investigation by Discord moderators.

A scan through crypto Twitter showed mixed sentiment among investors. User @PostmanNay claims“All nfts on terra are now as useless as the luna token.”

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

Terra NFT Polyegg collection asked Twitter followers which blockchain to move to, because “it’s not a good idea to keep banging” on Terra. While Solana was a popular choice, veteran LUNA investors known as “LUNAtics” continue to pick up Terra NFTs.


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  • Ornella Hernández

    blockages

    Journalist

    Ornella is a Miami-based multimedia journalist who covers NFTs, the Metaverse, and DeFi. Prior to joining Blockworks, she worked for Cointelegraph and also worked for TV channels such as CNBC and Telemundo. She started investing in Ethereum after hearing about it from her father and hasn’t looked back since. She speaks English, Spanish, French and Italian.

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