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Terra (LUNA) has overtaken Binance Smart Chain (BSC) to become the second-largest blockchain for DeFi protocols in terms of total value locked (TVL).
Terra Becomes Second-Largest DeFi Protocol
Decentralized payments network Terra is now just behind Ethereum after surpassing Binance Smart Chain (BSC) in terms of total value locked (TVL) this week.
According to crypto analytics platform DeFi Llama, 13 projects have locked over $18.2 billion in value in Terra. That’s over $1.4 billion per protocol on average compared to an average of $73 million per protocol on Binance Smart Chain which has $16.5 billion locked on 225 protocols.
This is an increase of 42,000% compared to exactly one year ago when DeFi projects on Terra held a relatively smaller amount of $42 million. Meanwhile, Ethereum still retains the DeFi leader position with $152 billion in value locked on 361 protocols.
The gain comes amid surging growth for the network’s three-largest protocols. For instance, Anchor’s TVL currently sits at $7.51 billion after growing 23.6 percent in seven days, Lido represents $5.29 billion after gaining 12 percent, and Terraswap comprises $1.91 billion after its capital locked increased by 78.9 percent.
In the meantime, Delphi Labs’ automated market maker Astroport emerged as Terra’s fourth-largest protocol after attracting more than $1 billion through its lock drop. The top four projects represent 89.3 percent of Terra’s total value locked (TVL) combined.
Despite being overtaken by Terra, Binance Smart Chain is up 1.5 percent for the week with a total value locked of $16.4 billion.
LUNA Hits New All-time High
Terra's native token LUNA has hit a new all-time high of $84 today with a market cap of over $30 billion. The token was the third-best performing DeFi token for the week with cross-chain bridge AnySwap and yield aggregator Yearn Finance topping the rankings with 53.7 percent and 51.4 percent respectively.
LUNA now accounts for one-fifth of the combined DeFi market cap and was one of the strongest-performing cryptocurrencies in the past month despite the overall crypto market performing in red.