Polygon

Around May 12th the Terra blockchain started its downfall with its stablecoin, UST, losing its peg to the dollar. In part that was a consequence of the Terra DeFi platform, Anchor, promising unsustainable returns of up to 20% from staking. Users started withdrawing, and the platform could not handle it.

Now Terra collapsed, its projects and protocols are seeking a new platform and Polygon has offered a massive fund to help them migrate to its network. That could in turn be bullish for MATIC.

Cryptoassets are a highly volatile unregulated investment product.

Polygon offers a new home for Terra projects

According to Ryan Wyatt, the CEO of Polygon Studios, Polygon has decided to launch a multi-million dollar fund known as the Terra Developer Fund. The fund is meant to help Terra projects move from the failing Terra blockchain and onto Polygon’s.

Polygon (formerly Matic) has been around since 2019, after it launched as a sidechain created to complement Ethereum’s network and assist in the creation of scaling solutions for the project. While Terra did everything in its power to maintain the UST’s peg, including deploying billions from its Bitcoin reserves in order to try and prevent the disastrous outcome, it eventually still happened.

The fall of UST even affected Terra’s main cryptocurrency, LUNA, which crashed from $64 to $0.004 after only a few days of struggle. Even the entire blockchain temporarily stopped operating, but the prices still crashed and both UST and LUNA have spiraled down to zero.

Read more: Polygon Price Prediction for This Year

A mass migration to Polygon

With Terra being the sinking ship, Wyatt offered its projects to migrate to Polygon, and the first one to accept the offer was the Terra NFT marketplace, OnePlanet. Once OnePlanet arrives to Polygon, it will assist the network in bringing over the rest of the projects willing to migrate to this network. This particularly includes Terra NFT projects, which can apply to join OnePlanet’s move.

While OnePlanet was the first to reach out and move to Polygon, it was not the last. So far, more than 50 different projects reached out to Polygon, asking for assistance, and the Polygon team is currently reviewing their grant and migration applications.

The project has been preparing for this situation ever since Terra started experiencing issues. Furthermore, Wyatt explained that Polygon has an advantage over chains like Terra, as its team consists of world-class executives from some of the largest companies around the globe, including Amazon, Google, Riot Games, Mythical Games, Unity, Activision, EA, and others.

As a result, NFTs and games from Terra have great resources available to them, as all of these people understand the value of such projects. With all that said, however, users are now massively buying Polygon due to a large surge of new projects, which will also mean new use cases for its token, MATIC.

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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.