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Terra Sees 2K New Accounts Created Daily Post Mirror Launch: Flipside Crypto

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Published on:
January 21, 2021

Flipside Crypto dives into what's going on with Terra, following the recent launch of their Mirror Protocol.

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Flipside Crypto’s labeling of Terra’s on-chain activity reveals 2K new accounts are added to the chain daily since their launch of the Mirror protocol early December. The new protocol gives users exposure to real world equity assets, on-chain, without having to own them.


What’s Hot in Crypto This Week? 

Terra is a blockchain platform with a suite of stablecoins that are each pegged to different fiat currencies. The LUNA token serves as collateral for these stablecoins and powers the Terra blockchain’s delegated proof of stake system, ensuring stability and security of the network. 


Why

On Dec. 3, 2020, Terra launched their Mirror Protocol, a synthetic asset platform that allows for the tracking, issuing and trading of real world assets, such as equities, via Mirrored Assets (mAssets). These mAssets are tied to a real world asset and mirror their exchange prices, on-chain. Mirror expands the adoption of UST by requiring UST to mint and swap mAssets on Terra. So far, Mirror has accumulated more than $90 million worth of UST collateralizing mAssets.


terraaccounts


Terra’s on-chain data shows 2,000 new accounts are created daily. The Terra stablecoins are rapidly gaining traction, now with over 2 million total accounts created. On-chain data reveals there are an average of 63,000 active accounts per day.  


What’s Flipside’s Take? 

Terra and their Mirror Protocol offer users exposure to real-world assets without the constraints of geography, market hours or having to own the asset. This model reduces many of the barriers to participation in equity markets that typically exist.  


As more accounts are created on Terra, more transactions are likely to happen. Each stablecoin transaction on Terra incurs a fee. That fee is paid to stakers of Terra’s token, LUNA. As more transactions happen, holders of the LUNA token become incentivized to stake their tokens due to the increased opportunity to earn rewards. 


Additionally, LUNA has no inflation, so when the adoption of Terra’s stablecoins increases, transaction volumes move upwards, and LUNA rewards increase. Consequently, LUNA becomes scarcer as more Terra stablecoins are printed to meet demand since minting on Terra requires burning a stablecoin or a unit of LUNA.


This will help continue broader adoption of Terra stablecoins. The LUNA token should keep gaining value due to the increasing demand and usage of Terra stablecoins. 


For a deeper look at Terra’s on-chain data check out Terra’s Community Console at terra.flipsidecrypto.com.

 


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Author(s)

Rochelle Guillou

I'm a market analyst and writer at Flipside Crypto.

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