Less than a month ago, The Terra ecosystem went through a sheer disaster. However, it appears that the number of users that hold assets in the new chain Terra Classic increased by more than 500%.
There are many lessons to be learned from the crash of the UST algorithmic stablecoin and the intertwined LUNA, which was supposed to help stabilize the peg, as CryptoPotato reported previously.
Unfortunately, tens of billions were wiped off the market in a matter of days in an event that was never before seen in recent history. In less than a week, two top cryptocurrencies by market cap were completely destroyed from existence.
This, however, caused a rise of new users to the Terra Classic (LUNC).
Terra 2.0, the original LUNA, as some refer to it while LUNC is the former LUNA token prior to the creation of the separate blockchain,
The total number of unique addresses that hold assets in the Terra Classic chain increased by around 560% in the span of one month, according to the data from CoinMarketCap.
The lack of fundamental understanding of how the UST pegging algorithm worked could be one of the possible reasons for this is the plummeting price.
Investors could have bought LUNA for pennies in anticipation of massive returns once the algorithm stabilized.
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