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Terra TVL surpasses BSC, becomes second-biggest blockchain for DeFi

Terra TVL surpasses BSC, becomes second-biggest blockchain for DeFi

Last updated 5th Aug 2022
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Decentralized payments network Terra is now the second-biggest blockchain for DeFi protocols in terms of total value locked (TVL). It is still second to Ethereum, but its TVL has now passed that of Binance Smart Chain (BSC), CoinDesk wrote.

According to analytics data, 13 projects on Terra lock over $18 billion in value. This comes to more than $1.4 billion on average per protocol. In comparison, the average per protocol on BSC is just $73 million. BSC has 225 protocols with a total of $16.5 billion locked.

42K percent growth y/y

In December last year, the value of DeFi projects on Terra was just $42 million. This comes to near 42,000% growth year on year. The leading DeFi protocol on Terra is Anchor, a savings protocol offering stable yields on stablecoin deposits. 42% of Terra’s TVL is attributed to Anchor, which locks more than $7.7 billion in value. Anchor users obtain rewards by staking from major proof-of-stake blockchains.

The next-biggest protocol is staked assets liquidity provider Lido with over $5.4 billion. Terraswap comes third. The decentralized exchange’s TVL has gained over 95% in the past week. It uses Terra’s smart contracts to match peer-to-peer trades between users. Users contribute all liquidity themselves, as on other DEXs. In exchange, they get token rewards based on the amount of liquidity per trading pair provided.

Metaverse and gaming on Terra

Gaming and metaverse apps have left a trace on the blockchain. The launchpad StarTerra, which supports NFT integration, has TVL of $21 million.  The TVL of decentralized lottery LoTerra is more than $311,000.

LUNA token seeing unprecedented gains

Rising LUNA token prices run parallel to the increase in TVL on Terra. LUNA has gained 54% since last week. This morning, Luna was trading at an all-time high of $83.

Over the past month, LUNA was one of the top performers against the backdrop of a broader market tumble. Ethereum and Bitcoin have been trading in a tight range recently, while tokens of Avalanche and Solana saw major gains as alternatives to Ethereum.

The lucrative SoLunAvax

Crypto insiders call investments in Solana, LUNA, and Avalanche the ‘SoLunAvax’ trio. These trades have gained almost 400% since May this year in comparison to a basket of BTC and ETH weighted equally in the same time period. Still, Ethereum is the most valuable blockchain with TVL of $152 billion on 361 protocols.  

Daniela Kirova

Daniela Kirova

Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.