Block data showed that the Terra network was reactivated Friday, after being interrupted twice in 12 hours.
The reactivation comes nearly 12 hours after the network was suspended by the developers, who said they planned to “reconstruct” the blockchain.
The move came when a wave of withdrawals overloaded the blockchain, pushing transaction speeds to a crawl. This caused several major exchanges, including Binance and OKX, to remove most of the LUNA and UST pairs.
world no. 2 Coinbase also recently joined its peers in restricting trading of the tokens, and will suspend their trading on May 27†
The crash of UST in particular was catastrophic for Terra as much of the DeFi value on the platform was built around the token. UST is now trading below $0.20.
Terra starts trading again
Terra developers have officially confirmed the reactivation in a tweet† They encouraged users to remove all their non-native assets, such as tied Ethereum, from the chain.
Data from Atom Scan shows that new blocks were generated on the Terra blockchain approximately 12 hours after the suspension. Developers said the last block generated before the break was 7607789. The latest data shows that a block numbered 7607839 has been generated.
Thousands of transactions were processed by the blocks, although it was not immediately clear what they entailed. But judging by the general sentiment around the blockchain, it was most likely withdrawals or sell orders.
While the developers have outlined a slew of different measures, including LUNA coins and UST fires, to support the two tokens, their prices have only deteriorated.
Terraswap back online, but to a limited extent
Terraswap, one of Terra’s largest decentralized exchanges, said it is now back online. But this is only to a limited extent, in order to arrive at a recovery consensus. Currently, most aspects of Terra are largely redirected towards preserving the UST link and facilitating withdrawals.
But Terra’s temporary hiatus turned out to have disrupted other projects. DeFi platform Venus Protocol said an outdated price feed for LUNA caused by the suspension may have the protocol cost about $11.2 million.
With over five years of experience in global financial markets, Ambar plans to leverage this knowledge for the fast-growing world of crypto and DeFi. His main interest lies in finding out how geopolitical developments could affect crypto markets and what that could mean for your bitcoin holdings. When he’s not scouring the internet for the latest news, you can watch him play video games or watch Seinfeld reruns. You can reach him at [email protected]
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