New Year’s Resolutions

    Terra - 8

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    2022 was not as it was expected for the Terra chain. On May 11th, the chain of events ended up with the collapse of this blockchain. However, some weeks after in May the new terra was launched to replace the old Terra.

    What New Year’s Resolutions could the protocol make to ensure 2023 is better than 2022?

    To answer this question, this dashboard looks into the change in different aspects of both the Terra itself and the broader field in 2022. Based on the synthesis of metrics it suggests angles to be considered for improvements.

    The following aspects will be analyzed: Performance, DeFi, NFT and Developments.


    Performance


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    DeFi



    NFT


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    Development


    The performance of a chain can be evaluated by different metrics, the most important of which: Success Rate, TPS, and Block Time.

    The Terra chain showed a good constant performance in terms of success rate. The daily average of Success Rate for the Terra chain is above 96%, which is higher than Polygon, Optimism and Avalanche. Terra should keep the Success Rate at the same level for 2023 to compete with the other good performed chains.

    However, in terms of speed, the Terra chain has not performed well in 2022 comparing other chains.

    The scatter plot next to this box depicts the situation of the selected chains in terms of DeFi.

    We can see that terra is among low swaps and low swappers chains (similar to Flow). NEAR and THORChain are closest chains .

    Terra to reach the level of THORchain in terms of number of swappers should has a 50% growth.

    In terms of number of swaps the Terra chain should experience 5 times higher daily swaps to reach the same level as NEAR.

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    The scatter plot next to this box situates the Terra chain among other chains based on two dimensions: Success Rate and TPS.

    As can be seen the Terra chain is categorized as a high success rate and low TPS chain.

    However, TPS is dependent to the total number of transactions executed/demanded on the chain. The graph below shows the daily number of Successful transactions from the inception of the Terra 2.0 till the end of the year 2022.

    We can see that while the number of transactions on the Terra has increased in the second half of the year, it is much lower than the other sample chains.

    One thing that the Terra should work on in 2023 is on increasing the popularity of the chain and attracting more transactions.


    Definitions


    Success rate : The proportion of succeeded transactions to the total number of transactions.

    TPS: The number of transactions per second.

    Block Time: The time difference between two blocks in seconds.


    Overview


    Defi sector can be represented by swaps activities.

    Graphs below show the daily number of swaps and swappers in 2022 as well as the average daily number of swaps and swappers on 7 chains including the Terra chain.

    As can be seen swap activities on the Terra chain is far lower than the other chains. One goal for the Terra chain would be improving on DeFi and trying to target the goal between NEAR and THORChain.

    Graphs below show the daily number of NFT Sales and NFT purchasers as well as the volume of NFT sales in 6 chains in 2022.

    We can see that Ethereum and Solana have the expanded NFT market.

    Terra has a marginal share in the NFT Market.


    In 2021 the popularity of NFTs exploded and the adoption of NFTs rapidly grew. In the 2022 bear market, the NFT market continues showing signs of being alive in many chains. Even many expect NFTs to rescue the crypto market and blockchain projects by pulling new people into using cryptocurrencies.

    However, as the data shows Terra 2.0 is among the least popular chains in terms of number and volume of NFT sales.

    Terra has a long way ahead to be a known platform for the NFT market. However, in 2023 can target being close to NEAR or Optimism.

    The expansion of the ecosystem is considered an important indicator of the growth and popularity of a blockchain.

    Terra has a expanding ecosystem as the data shows. However, the daily number of active is much lesser than the other chains like Solana and Avalanche.

    One way of improvement is to attract more developers building on the Terra chain.

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    Summary


    This dashboard using retrospective perspective attempts to set goals for next year.

    The Terra’s NEW YEAR Resolutions would be:

    • Performance: To keep the high success rate of transactions competing Ethereum and its Layer 2 Optimism.

    • Performance: To increase transactions on the chain while increasing TPS and shortening the block time.

    • DeFi: To increase the number of Swaps and Swappers between 50% and 100% to compete chains like NEAR and THORChain.

    • NFT: To extensively work on expanding NFT Market on the Terra chain. NFT sales should be reach the daily number of 1000 to compete layer 2 like Optimism.

    • Development: To keep focus on rebuilding. In the second half of 2022 the daily number of active contracts has doubled. This can be happened again in 2023 and we reach to four times higher existing daily number of active contracts (near to the Solana chain).