Block49 Capital: Why We Are Bullish on the Terra Ecosystem?
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Block49 Capital: Why We Are Bullish on the Terra Ecosystem?
Terra's ecosystem and its native token LUNA are gaining increasing popularity, with a clear narrative: Terra has the potential to become a mainstream foundational blockchain with extensive use cases.
Navigating Web3 tides with focused insightsAuthor: Block49 Capital
Translation: TechFlow
Terra's ecosystem and its native token LUNA are gaining increasing popularity, with a clear narrative: Terra has the potential to become a mainstream foundational blockchain with a wide range of use cases.
Stablecoins:
Terra is the only blockchain that directly accumulates value as capital enters the ecosystem. Whenever $1 worth of $LUNA is minted, $1 worth of UST is burned. Therefore, just the dollar-denominated portion of LUNA's total addressable market exceeds $2 trillion.
The value accumulation potential of non-dollar stablecoins will grow over time. The fact that Chai uses $KRT (the Korean won stablecoin) demonstrates that demand for bringing foreign currencies on-chain already extends beyond DeFi, meaning the potential market for non-dollar stablecoins could be even larger.
Terra is the only blockchain supporting fully decentralized and algorithmic stablecoins. Centralized issuers like Tether face strict government regulation and are highly susceptible to future censorship. In contrast, UST represents a permissionless global currency.
Anchor:
Anchor will eventually consist of many "bAssets," promoting lending and deposit activities. Anchor makes it easy for ordinary users to access predictable, secure, and competitive yields. In contrast, other major markets currently offer only variable yields.
Mirror:
We believe Mirror's ecosystem is far more exciting than Synthetix's and better tailored to the needs of average users. As synthetic capabilities expand, demand for synthetic assets will increase.
Mars Protocol:
Once 'mAssets' can be collateralized on Mars Protocol, it will offer opportunities similar to Lombard loans, enabling users to never have to sell their blue-chip tokens and instead borrow against them as they appreciate. Synthetic stocks could also serve as an excellent on-chain hedge for cryptocurrencies.
Cross-Chain Impact:
Terra's value accumulation does not come solely from direct $UST minting. @orion_money enables ETH users to access @anchor_protocol yields through native Ethereum applications. $UST will soon launch on Solana and other blockchains, and its usage across these chains will accrue value back to LUNA.
Upcoming Protocols:
Protocols addressing NFTs, fantasy sports and betting, DEXs, on-chain asset management, derivatives, P2E games, and off-chain payments are all launching soon. Every use case on Ethereum will eventually exist on #Terra.
Even without a major DEX and with very limited use cases so far, Terra’s TVL has already grown to $6.25 billion. We expect continued inflows of capital as the ecosystem scales exponentially. Terra’s fiat on-ramps are also becoming stronger with the development of CEXs and financial applications.
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