Terra NFT Market Sees Trading Spike Amid UST Collapse

Terra’s NFT daily trading volume on Wednesday reached 3.1 million UST, up from 384,769 UST the day before

May 11, 2022 05:59 pm

Blockworks exclusive art by Axel Rangel

After never surpassing 11,000 LUNA, volume on Random Earth skyrocketed to 438,665 LUNA
Investors are torn between loyalty to LUNA and a loss of confidence

Though Ethereum is home to some of the most dominant NFTs, at least a dozen other blockchains mint the digital collectibles — including Terra, which collectors have turned to thanks to comparably lower gas fees.

Amid the collapse of Terra’s stablecoin TerraUSD (UST) and its sister token, LUNA, NFT (non-fungible token) projects built on Terra have seen a considerable uptick in trading as savvy traders look to cash in on deep price discrepancies.

The daily volume of NFT trading on popular Terra marketplaces Random Earth, Knowhere and Luart is the highest it’s been since March 1, according to data aggregator Flipside Crypto. Terra’s NFT daily volume on May 11 reached 3.1 million UST ($2.1 million), up from 384,769 UST the day before.

Newsletter

Subscribe to The Breakdown

Random Earth and Knowhere also observed their highest days of trading volume on May 11. After never surpassing 11,000 LUNA, volume on Random Earth skyrocketed to 438,665 LUNA ($485,263), while Knowhere reached 6,005 LUNA at the time of publication.

Some of the most highly traded Terra NFT collections include Galactic Punks, Hell Cats, Derby Stars and Luna Bulls. Twitter user @RyanBethencourt pointed out the rapid repricing of NFTs, specifically on Random Earth, and questioned if their value would hold if Terra were to “fall into a death spiral.”

Loading Tweet..

Users of another Terra NFT marketplace, OnePlanet, took to Discord to report transaction delays — traders said the digital assets didn’t immediately show up in their wallets after the purchase closed.

And those who couldn’t delist their NFTs in time were promised an investigation by Discord moderators.

A sweep through crypto Twitter showed mixed sentiment among investors. User @PostmanNay claimed, “All nfts on terra are now as worthless as the luna token.”

Another user, @c4chaos, called for compassion for those may have lost their life savings.

Terra NFT collection PolyEgg asked Twitter followers which blockchain to move to, because “it’s not a good idea to continue minting” on Terra. While Solana was a popular pick, seasoned LUNA investors, known as “LUNAtics,” continue to scoop up Terra NFTs.

Loading Tweet..

Get the news in your inbox. Explore Blockworks newsletters:

The Breakdown: Decoding crypto and the markets. Daily.
0xResearch: Alpha in your inbox. Think like an analyst.

Tags

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Digital Asset Summit 2026

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

buy tickets learn more

recent research

Research

Kinetiq Protocol: From LST Infrastructure to HIP-3 Deployer

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

by Shaunda Devens