Initially, the decentralized finance (DeFi) ecosystem was specific to Ethereum (ETH). However, as its fees have increased, DeFi has expanded to other blockchains. Each of these chains hopes to one day overtake the giant Ethereum….And TERRA is quite an outsider!
TERRA passes BSC
The decentralized finance ecosystem was born in early 2020. During the first year, it was mostly restricted to Ethereum. The year 2021, on the other hand, has seen the multiplication of smart contracts blockchains. Smart contracts mean the DeFi ecosystem.
DeFi, as a whole, has seen a 10-fold increase in TVL in the space of a year, going from $24 billion to $250 billion.
The Binance Smart Chain (BSC) has been the blockchain with the biggest hype after Ethereum. As a result, for a long time, it was the second most popular blockchain in terms of LST. However, an outsider has just dethroned the Binance blockchain. It is Terra.
Terra has indeed just passed BSC in terms of TVL, accounting for $20.23 billion versus $17 billion for BSC, according to data compiled by DefiLlama.
As a result, the latter has seen its TVL increase by 60% in the last 7 days, from $12 billion on December 15 to over $20 billion at the time of writing.
TERRA: the new Eldorado of DEFI
The blockchain mainnet Terra was born, just over a year ago. Its DeFi ecosystem is driven by 3 main protocols:
- Anchor, a so-called “money market” protocol that allows you to save and borrow cryptocurrencies. This one has $8.76 billion deposited, or 43% of Terra’s TVL.
- Lido, a protocol that allows you to store tokens such as ETH on ETH 2.0 or SOL. This one has $6.25 billion in TVL.
- Terraswap, a decentralized exchange platform specific to Terra. This one counts 2.11 billion dollars of TVL.
Together, these three protocols account for 80% of the TVL of the Terra blockchain.
The new record of TVL broken by Terra has been made possible by the craze met by Anchor and Lido during the last 7 days. Indeed, their respective TVLs have increased by 43 and 27% during this period.
The Terra blockchain token LUNA, on the other hand, has benefited positively from this craze. As a result, its price has recorded a 62% increase in the last 7 days, rising from $56 to $95.
Terra’s teams intend to continue this evolution in 2022. In fact, they have announced the launch of more than 160 projects on the blockchain next year.
