Terra becomes second largest DeFi protocol, dethrones BSC with TVL by CoinQuora

Terra becomes second largest DeFi protocol, dethrones BSC with TVL

, an open source payment network, is now the second largest blockchain for DeFi protocols in terms of total locked-in value (TVL) in the digital finance space. With that milestone taken, Terra ate Binance Smart Chain (BSC) lunch, as it dethroned BSC with its revolutionary TVL in the DeFi space.

Currently, Terra has over 13 DeFi projects running on its platform with amazing performance. In addition to DeFi projects operated as part of the Terra network, a total value of over $ 18.2 billion is locked in on the projects.

When separated, about $ 18 billion TVL is an average of about $ 1.4 billion per protocol. That’s really fascinating, compared to an average of $ 73 million per protocol on the Binance Smart Chain (BSC) which has blocked $ 16.5 billion on 225 protocols since its inception.

In percentage terms, this equates to about over 42,000% increase from previous years, when Terra’s DeFi projects racked up a value of $ 42 million.

Nonetheless, no matter how blistering heat Terra and BSC orchestrate in TVL, rival crypto (BTC) still remains the monster platform that wears the DeFi crown with a whopping $ 152 billion TVL locked to 361 protocols.

Additionally, despite crypto’s fascinating performance, Ethereum appears to be stepping up its predetermined efforts to accommodate more DeFi protocols than ever before.

Notably, DeFi projects primarily rely on a myriad of protocols that use smart contracts. Essentially, they are doing it just with common sense to eliminate any presence of intermediaries or third parties in financial services such as lending, trading and borrowing in the marketplace.

Reminder, this Terra message becomes the second largest DeFi protocol is not financial advice. On the contrary, it only exists to inform and educate about the current performance of the Terra blockchain in the DeFi world.

List of the 13 most compelling DeFi projects on Terra Blockchain

Terra TVL Chart (DeFiLlama)

Now, without further ado, let’s move quickly and discuss some of the terrific DeFi projects and how they performed on the Terra blockchain.

DeFi Projects Performance on Terra’s Blockchain

Anchor protocol

Among the 13 DeFi projects operating on Terra’s network, Anchor takes first place with an astounding TVL. In fact, it tops the list with a high TVL. Exaggeratedly, Anchor has a gargantuan threshold value of over $ 7.7 billion TVL in the market, at the time of writing. This figure made him become first among the crowd.

Anchor’s groundbreaking $ 7.7 billion TVL is estimated to be around 42% of Terra’s overall TVL. Without a doubt, this synergy means that Anchor occupies a huge volume on the Terra blockchain.

However, with this fantastic achievement, it appears to have positively impacted Achor’s user base, currently amassing a huge leap in mainstream traction. Along with its compelling outlook, Anchor users are rewarded through a “diverse stream of staked rewards”, particularly from Proof-of-Stake (PoS) consensus blockchains.

Lido protocol

Next on the list is Stakes’ asset liquidity provider, the Lido Protocol. Lido takes second place right Anchor with $ 5.4 billion from TVL. As Lido features an impressive appearance in TVL, members of his community wish him a good stay to be on top as the second largest DeFi protocol on Terra.

They believe in high regard that Lido has the potential and what it takes to dethrone Anchor as the first DeFi project in the Terra blockchain soon.


In addition, Decentralized Exchange (DEX), Terraswap follows Lido protocol in third place. He came third with a lockdown of the total value increased by 95%. To clarify, Terraswap uses Terra’s smart contracts to deliver smooth and engaging peer-to-peer (P2P) exchanges between its users.

By promoting this, the liquidity of other DEXs becomes shareable by the Terraswap users themselves. In essence, they contribute liquidity in exchange for token rewards. They receive the reward based on the amount of liquidity they provide for each transaction in the market.


Nevertheless, the evolution of Metaverse applications has also contributed to their remarkable presence on Terra. The StarTerra gamified launch pad, which features intuitive sport for NFT integration, has a TVL of $ 21 million. Meanwhile, the decentralized LoTerra lottery protocol follows with a value of over $ 311,000.

LUNA token

Coincidentally, Terra’s total TVL projector arrived at the same time the LUNA token price was in a bullish fashion. Compared to its previous days, the LUNA token rose 54% with a price of $ 83, the all-time high (ATH) this week on CoinGecko.

Commenting on LUNA’s current success, many attribute this success to the token’s sophisticated mechanisms. Others also believe that LUNA’s drastic price spike is due to the influence of some other DeFi applications.

“Terra has recently had great success in terms of both LUNA part price and TVL over its DeFi protocols. The demand for the LUNA token comes mainly from the demand for UST, the algorithmic stablecoin on Terra that is minted using (hot) LUNA, ”according to Spielworks CEO Adrian Krion.

Apart from this reaction, he mentioned that the exchange protocols have no influence on Terra’s TVL, unlike other existing Layer 1 blockchains. Additionally, Krion highlighted how happy he was with how the LUNA tokens managed to stabilize the protocol to drive the yield.

On the other hand, it is worth checking the spelling of the performance of LUNA tokens in the market. Among the odds, the token has become some of the strongest cryptocurrencies with an incredible performance in the crypto space.

Bitcoin (BTC) and Ethereum (ETH) have traded very tightly with a monumental market feel everywhere. (SOL), (AVAX), and LUNA itself have given their cryptocurrency portfolio a competitive edge, as some traders have referred to them as the SoLunAVax trio.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of CoinQuora. Nothing in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

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