The bearish conditions in the cryptocurrency market are creating an opportunity for projects in the crypto and blockchain sector to catch their breath and focus on building their products. There’s also interesting developments going on that are connected to the recent crash of UST and LUNA. Let’s check out three crypto and blockchain projects that will be worth following over the week.

3. Terra (LUNA)

Terra is a blockchain project that was founded in 2018 and launched its mainnet in April 2019. Originally, the network was designed to support algorithmic stablecoins that would target a peg against various fiat currencies. Terra stablecoins are “algorithmic”—unlike most other stablecoins, Terra stablecoins are not backed by fiat or crypto assets. Instead, their price is supposed to be maintained through an arbitrage mechanism where the stablecoins can be exchanged for the network’s native LUNA token.

UST, Terra’s algorithmic stablecoin designed to follow the US dollar, began seeing explosive growth in late 2021 and grew to a market cap of over $15 billion by March 2022. A big contributor to the growth of UST was Anchor Protocol, which offered attractive yields to UST depositors.

In May 2022, the UST stablecoin lost its peg against the dollar. As holders began cashing out their UST tokens for LUNA, the supply of LUNA started increasing at an extremely rapid rate, fueling a price collapse for both UST and LUNA.

Why Terra? Terra community looks for a second chance with new blockchain launch

After the collapse of UST and LUNA, Terraform Labs CEO Do Kwon proposed a plan to launch a new blockchain with the name Terra and removing the algorithmic stablecoin functionality from it. The proposal also entails renaming the “old” Terra blockchain to Terra Classic and changing the name of its token to LUNC.

Although controversial, the proposal passed via a token vote on the Terra blockchain. The proposal also includes an airdrop plan through which LUNA token holders and other stakeholders of the “old” Terra blockchain will receive LUNA tokens on the new blockchain, which launched on May 27.

Most of the major cryptocurrency exchanges, including the likes of Binance, Huobi and OKX, have announced support for the airdrop. If you hold LUNA on a cryptocurrency exchange, make sure to check with their announcement section or blog to see if you will be eligible for an airdrop of LUNA tokens on the new network.

Since Terra is a very controversial topic in the cryptocurrency community, it will be extremely interesting to watch the debut of the new LUNA token on the market.

2. Polkadot (DOT)

Polkadot is a Proof-of-Stake blockchain platform designed with a focus on interoperability and scalability. By using the Substrate framework, developers can create customized blockchains called “parachains” and connect them to the Polkadot network to benefit from its security and gain the ability to interoperate with other parachains.

Since the network can only support a limited amount of parachains, parachain projects have to win a parachain slot auction in order to earn a spot. Projects submit their bids in parachain slot auctions with Polkadot’s native DOT token. Through “crowdloans”, supporters of a parachain project can loan their DOT to a project to help them win an auction. 

Why Polkadot? Numerous partnerships and integrations could bolster the Polkadot ecosystem

As the Polkadot ecosystem begins to take shape, we’re starting to see some promising developments from projects building on the platform. 

In March, the Acala project launched a $250 million ecosystem fund to back startups building stablecoin-related applications on Polkadot and Kusama parachains. According to Acala, they’re interested in supporting projects that are creating utilities such as decentralized exchanges and money market protocols featuring the aUSD stablecoin. 

Uniswap v3, the leading decentralized exchange on the Ethereum blockchain, will be deploying a version of its protocol on Moonbeam. Moonbeam is a parachain on Polkadot that features compatibility with the Ethereum Virtual Machine (EVM). Having tools such as Uniswap available in the Polkadot ecosystem could go a long way towards making life easier for users transitioning from other blockchains to Polkadot.

Parity, a company that’s among the leaders in Polkadot development, has announced that South Korea-based blockchain project Klaytn is creating a new blockchain platform that will be bridged to Polkadot.

1. Solana (SOL)

Solana is a high-performance blockchain platform with smart contract capabilities. After launching its mainnet in 2020, Solana has emerged as one of the most credible competitors to Ethereum in the smart contracts sector. Solana uses a Proof-of-Stake consensus mechanism combined with innovations like Proof-of-History, which allow the blockchain to handle thousands of transactions per second while keeping costs low for users. The Solana project has attracted high-profile backers like Alameda Research, Polychain and Andreessen Horowitz. 

Why Solana? Brave announces Solana integration, Magic Eden posts promising numbers

Brave, a web browser that’s very popular in the cryptocurrency community, has announced that it’s pursuing a “full integration” with the Solana ecosystem. 

Version 1.39 of the browser introduces support for Solana’s native asset SOL, as well as tokens issued on the Solana blockchain, to the Brave Wallet. It will also support SOL purchases through Ramp. Basic Attention Token (BAT) holders will have the option of bridging their tokens to Solana through the Wormhole protocol. As for future plans, the Brave team says they’re looking to integrate NFT buying and selling on the Solana-based Magic Eden marketplace, and give users the ability to access other Solana DApps as well. 

Speaking of Solana NFTs and Magic Eden, the marketplace has been seeing some very encouraging numbers as of late. Li Jin, a co-founder at Variant Fund, recently compared the activity on Magic Eden and OpenSea, which is currently the dominant player among NFT marketplaces.


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