What Will be the Fate of Projects on the Terra Ecosystem? Will They Also be Lost For A Long Time?

The Terra ecosystem in the past week experienced a massive nightmare as the UST & LUNA both being the native tokens slashed heavily. The LUNA prices have dropped so heavily that it was very close to Shiba INU prices. No doubt the prices witnessed stability to some extent at the moment but the projects that are running on the Terra blockchain are suffering heavily until the press time.

Also Read: Where Are the $3.5 billion Terra’s Bitcoin Reserves, Should this be a Matter of Concern?

Mirror Protocol (MIR)

The beginning of the protocol was extremely bearish as the asset has plunged more than 200% since the beginning of the year 2022. The bearish trend during the first few days of 2022, dragged the price by 57% but the major drop happened when the UST lost its peg. The asset tanked heavily by more than 87% and struggled hard to ease out the bearish trend.

The MIR price, no doubt, has rebounded finely from its lows close to $0.20 but eventually could manage to hit the resistance at $0.438. However, the bears quickly jumped in and extracted their profits to drag the price towards $0.269 at the press time. The technicals are extremely bearish and hence the prices are expected to fall back below $0.2 in the next couple of days.

Anchor Protocol

The Anchor protocol, after plummeting from levels close to $6, ignited its swing within a falling wedge. No doubt the asset broke out from the wedge and ranged high towards the immediate resistance above $2.24, but the bears dragged the price down. Further, the dump was fuelled by the UST de-peg event which slashed the price by more than 100%.

The platform is currently receiving notable buying volume but still, the prices are unable to make their way out from the bearish trend. The prices are currently under extreme bearish pressure and hence no possibility of a breakout may be expected in the upcoming time. Conversely, the technicals suggest a possibility of a breakout after a brief consolidation for another couple of days.

Collectively, the projects on the Terra ecosystem have plunged extremely heavily and hence the UST de-peg incident has impacted largely what was expected. Therefore, if a larger portion of the volume eases, then a substantial amount of market capitalization may be whipped out completely from the entire crypto space. And hence the Terraform labs are required to come up with a strong recovery plan at the earliest.