The Terra ecosystem went through a sheer catastrophe less than a month ago, but it appears that the number of unique addresses that hold assets in the new chain – Terra Classic – increased by more than 500%.
As CryptoPotato reported previously – there are many lessons to be learned from the crash of the UST algorithmic stablecoin and the intertwined LUNA, the burning of which was supposed to help stabilize the peg.
Unfortunately, many people lost a lot of money as tens of billions were wiped off the market in a matter of days in an event that was never before seen in recent history – two top cryptocurrencies by market cap were completely destroyed from existence in less than a week.
This, however, apparently saw an influx of new holders to the now-old network – Terra Classic (LUNC).
LUNC is the former LUNA token prior to the creation of the separate blockchain – Terra 2.0 – the original LUNA, as some refer to it.
Data from CoinMarketCap reveals that the total number of unique addresses that hold assets in the Terra Classic chain increased by around 560% in the span of one month.
One of the possible reasons for this is the plummeting price coupled with a lack of fundamental understanding of how the UST pegging algorithm worked.
It’s entirely possible for unsuspecting investors to have bought LUNA for pennies in hopes of massive returns once the algorithm stabilized – which it ultimately wouldn’t.