Terra projects' migration to Polygon sounds bullish
What they say is true, "one man's meat is another man's poison". This is the case with Terra and Polygon as numerous projects process their exit from the failed blockchain into the Polygon Network.
The demise of Terra's ecosystem due to the collapse of the dollar peg and the wicked dumping of the failed asset has led to a complete lack of faith in the project. This unfortunate event that has led to multiple projects migrating to Polygon looks like a small victory for Polygon in the general scheme of things.
Polygon is a layer 2 network for Ethereum that offers lower fees and fast transactions. My interest in Polygon stems from my participation in numerous farms on Polycub.
Anyway, the failure of the Terra ecosystem turned out to be one of the contributing factors to the dramatic drop in investors' confidence. As expected, numerous projects have been jumping ship, with Cointelegraph reporting that over 48 projects previously running on Terra are in the process of migrating to Polygon.
What does this mean?
Well, to put it plainly, they're moving all their operations to the Polygon network. The migrating projects will now use the available resources on the Polygon network.
This is also quite bullish for Polygon, as a whole. There will be more people buying and using Matic for fees. These projects will also contribute favourably to the traffic in the network.
Amongst the projects migrating from Terra, we have One Planet NFT marketplace with over 35k followers on Twitter, a Play to earn horse racing game called Derby Star and a couple of other working products.
As I see it, this is quite bullish for the Polygon network as a whole and I reckon that the price of Matic could end up appreciating due to this influx of new money and organic traffic.
In summary
This bear market has required numerous projects to really dig deep into their reserves. A number of lending protocols have already been priced out of the market, with Celsius and BlockFi among the most prominent names on the list.
Projects at the worst end of the bear market have been receiving support from others that were less hurt. This move by Polygon to onboard numerous projects from terra mirrors the efforts of other industry leaders that have been offering relief packages to rekt projects.
For now, the bear market still persists but I believe that in the long run, Polygon will be rewarded for building a bridge for these projects. In these torrid times, it is all about survival and no one knows it better than projects that have been adversely affected by the collapse of Terra.
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Twitter: https://twitter.com/belemo__
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