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Terra Is Now 2nd Largest DeFi Protocol

Terra holds over $18 billion worth of assets on its network.

Blockchain protocol Terra, which powers algorithmic Decentralized Stablecoins, has become the 2nd biggest project in terms of Total Value Locked (TVL). 

It is behind only Ethereum, the godfather of Decentralized Finance (DeFi).

According to crypto analytics website Defi Llama, Terra currently holds more than $18.2 billion worth of assets.

It crossed the Binance Smart Chain (BSC) last week. BSC, at the moment, holds $16.86 billion worth of assets.

On the Terra chain, more than $16.3 billion of value is locked only in 4 projects including Anchor, Lido, Terraswap, Astroport.

Anchor alone accounts for over $7 billion of value. It is a permissionless savings protocol that offers low-volatile yields on Terra stablecoin deposits.

The other 3 projects are also DeFi protocols.

So, the spurt in DeFi adoption has catapulted it as the 2nd biggest network by TVL.

Larry, a developer at Delphi Digital, a digital asset research firm, had called into question the statistics provided by Defi Llama. 

But the rankings have not changed since he made his statement.

At a time when the market is recovering from a sharp bear run, LUNA has posted 8 consecutive green candles. LUNA is right now priced at INR 6636.27.

By market capitalization, Terra’s native token LUNA ranks 9th, as per CoinMarketCap. It has pushed out Polkadot from the top 10.

So, both the blockchain and the cryptocurrency are emerging as strong contenders in the DeFi space.

Ethereum is still the king of DeFi, accounting for over 62% of value locked worth $152 billion.

The rise in the demand for DeFi protocols will push down Ethereum’s dominance. In future, there could be a multi-blockchain ecosystem. Considering this, some crypto projects are chasing interoperability so that there is no hindrance in the free flow of money.

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