The total value locked across the Terra ecosystem has surged recently. This has propelled the network to second place behind the industry-dominant Ethereum.
The Terra ecosystem has $18.6 billion in total value locked, according to analytics platform DeFilLama. As a result, it has become the second-largest network behind industry leader Ethereum, which has $160 billion TVL.
This surge in collateral has given Terra a 7.33% market share, which is more than Binance Smart Chain at 6.49%. Comparatively, the BSC ecosystem has $16.48 billion in TVL, according to DeFiLlama.
The amount of capital locked on Terra grew exponentially in 2021, resulting in an increase of 356 times, according to Delphi Digital.
1/ The amount of capital locked grew exponentially year-on-year on chains like @Terra_money (356x) and @0xPolygon (17,100x) while newer chains like @Cronos_chain and @Arbitrum that launched in the later half of 2021 managed to eke their way into the top 10 list. pic.twitter.com/FJ8lWTsAt7
— Delphi Digital (@Delphi_Digital) January 5, 2022
Furthermore, Terra has more collateral locked up than Fantom, Polygon, and Tron combined, so what is driving it?
What Is Driving Terra Adoption?
Drilling down into the networks and dApps running on Terra, it is clear that the Anchor lending platform is dominant. Anchor has a TVL of $8.89 billion, or almost half (47.8%) of the total on Terra. Additionally, it has seen an increase of more than 1,000% over the past six months.
The Anchor Protocol is a decentralized fixed-income lending and borrowing platform. It offers staking yields, bonding, and incentives on its native ANC token to provide competitive yields.
The second most popular protocol running on Terra is Lido with a TVL of $5.68 billion, or 30.5% of the total. Lido is a liquid ETH 2 staking platform that allows users to stake any amount of ETH without locking assets or running a node.
Terra is a decentralized financial payment network that enables payments with stablecoins which are algorithmically stabilized by its native token, LUNA.
LUNA Price Update
Terra’s native token, LUNA, has been one of the best performing crypto assets of 2021. Remarkably, LUNA skyrocketed a whopping 13,000% over the course of last year.
At the time of writing, the token was trading down 3% on the day at $85.56, according to CoinGecko. It has retreated with the rest of the market this year and is currently down 17.4% from its December 27 all-time high of $103.34.
LUNA’s epic price performance has pushed it into the crypto top ten with a market cap of just over $30 billion.
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