As the Terra blockchain collapsed, it decided to eliminate a lot of apps, including Anchor, which was the largest DeFi protocol on the chain at a given point. However, the protocol is worth nothing at the moment.
Furthermore, the fact that these protocols do have potential in their use cases, other chains are hounding them like vultures, including the Polygon network.
Polygon reels in Terra dApps
Bringing Terra’s protocols to Polygon will allow the latter for a faster recovery as these dApps once accounted for $30 billion, and with a more reliable chain, such a feat can be achieved again.
The CEO of Polygon studios, Ryan Watt and founder Sandeep Nailwal further confirmed this migration of protocols from Terra to Polygon.
Ryan stated that Polygon would be allocating capital and resources against these migrations to welcome the developers and their respective communities.
Sandeep also highlighted the growth that these DApps could have on Polygon and through SUPERNET for those looking for an app-specific change, including no restrictions on Validators/Bridge and the opportunity to make their chain a rollup.
However, the announcement did not bear any positive effect on the token as MATIC was noted trading 9% below its closing price on 15 May. A similar performance was seen on the investor front, wherein a scared more than confident approach was to be seen at the moment, owing to the market crash from a few days ago.
MATIC price action | Source: TradingView – AMBCrypto
The devastating crash of 9 May that led to the MATIC token declining by 48.89% had recovered of 23.67%, but witnessed an 8% fall on 16 May with the token trading at $0.68.
The recovery did pull MATIC out of the oversold zone, but neither helped being about a change in the investors’ conviction as they would need more than such pity rises to save over 90% of all MATIC holders from further losses.
MATIC investors in loss | Source: Intotheblock – AMBCrypto
Given the gravity of the panic created, whales too did not hesitate to show their presence. On 13 May, whales ended up moving around more than $351 million worth of MATIC. However, none of this was actively sold in the market as per exchange balances.
MATIC whale volume | Source: Intotheblock – AMBCrypto
However, selling activity was seen from some long-term holders who sold their holdings, in the process consuming 104.6 billion days. The only other time they sold their holdings was on 6 February, which was exactly a day before MATIC’s 16% rally.
MATIC long term holders selling | Source: Santiment – AMBCrypto
Thus, while on-boarding developers may be easy for Polygon, bringing back investor confidence will take more than just a while.
