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Terra Becomes the Second-Largest DeFi Protocol, Dethrones BSC With TVL

CryptocurrencyDec 24, 2021 10:01AM ET
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Terra Becomes the Second-Largest DeFi Protocol, Dethrones BSC With TVL

Terra, an open-source payment network, is now the second-largest blockchain for DeFi protocols in terms of total value locked (TVL) in the digital finance space. With this milestone covered, Terra has eaten Binance Smart Chain’s (BSC) lunch, as it has dethroned BSC with its groundbreaking TVL in the DeFi space.

Presently, Terra has more than 13 DeFi projects running on its platform with astounding performance. Apart from the DeFi projects operating under Terra’s Network, there is more than $18.2 billion total value locked on the projects.

When segregated, roughly the $18 billion TVL amounts to about $1.4 billion per-protocol average. This is way fascinating, compared to an average of $73 million per protocol on the Binance Smart Chain (BSC) that has locked $16.5 billion on 225 protocols since its inception.

Percentage-wise, this equates to roughly over 42,000% increment compared to the previous years when Terra’s DeFi projects accumulated $42 million in value.

Nevertheless, regardless of the mind-blowing heat that Terra and BSC orchestrate in TVL, Ethereum, the rival crypto to Bitcoin (BTC) still remains the monster platform that wears the DeFi crown with a whopping $152 billion TVL locked on 361 protocols.

What’s more, despite the crypto’s fascinating performance, Ethereum seems to heighten its predetermined effort to accommodate more DeFi protocols like never before.

Notably, DeFi projects depend mainly on a myriad of protocols that use smart contracts. In essence, they simply do this with common sense to eliminate any middlemen or third-party presence in financial services such as lending, trading, and borrowing activities in the market.

Reminder, this Terra Becomes Second-Largest DeFi Protocol post is not financial advice. Rather, it only exists to inform and educate on how the Terra blockchain is currently performing in the DeFi world.

List of 13 Most Compelling DeFi Projects on Terra Blockchain

Terra TVL Chart (DeFiLlama)

Now, without any delay, let’s quickly move forward and discuss some of the tremendous DeFi projects and their performances on the Terra blockchain.

DeFi Projects Performance on Terra’s Blockchain

Anchor Protocol

Among the 13 DeFi projects operating on Terra’s network, Anchor spots the first position with a staggering TVL. In fact, it leads the list with a high TVL. With exaggeration, Anchor has a gargantuan threshold value of over $7.7 billion TVL in the market, at the time of writing. This figure made it become first among the crowd.

The Anchor’s groundbreaking $7.7 billion TVL is estimated to be around 42% when compared to 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 seems to have impacted Achor’s user-based positively, presently amassing a huge stride of mainstream traction. Alongside its appealing outlook, Anchor users get rewarded through a “diversified stream of staked rewards”, specifically from Proof-of-Stake (PoS) consensus blockchains.

Lido Protocol

Next on the list is Staked’s asset liquidity provider, Lido protocol. Lido wins the second position right Anchor with $5.4 billion TVL. As Lido showcases an impressive appearance in TVL, its community members wish it a strong stay to be on top as the second-larger DeFi protocol on Terra.

They have a high esteem belief that Lido has the potential and what it takes to dethrone Anchor as the first DeFi project from the Terra blockchain soon.


Additionally, decentralized exchange (DEX), Terraswap follows Lido protocol in third place. It became third with an increased 95% total value lock. To clarify, Terraswap uses Terra’s smart contracts to convey smooth and attractive peer-to-peer (P2P) trades between its users.

By fostering this, other DEXs liquidity becomes shareable by Terraswap users themselves. In essence, they contribute liquidity in return for token rewards. They receive the reward in respect to the amount of liquidity they provide for each trading in the market.


Nevertheless, the evolution of Metaverse applications has also contributed to their remarkable presence on Terra as well. Gamified launchpad StarTerra which offers intuitive sport for NFT integration has a $21 million TVL. Meanwhile, decentralized lottery protocol LoTerra follows next with more than $311,000 in value.

LUNA Token

Coincidentally, Terra’s total TVL spotlight came at the same time that LUNA token’s price formed a bullish mode. When compared to its previous days, the LUNA token was up 54% with a price of $83 all-time high (ATH) this week on CoinGecko.

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

“Terra has recently been very successful both in terms of its LUNA coin price and the TVL on its DeFi protocols. The demand for the LUNA token mostly stems from the demand for UST, the algorithmic stablecoin on Terra which is minted using (burning) LUNA,” according to Spielworks CEO, Adrian Krion.

Apart from this reaction, he mentioned that swap protocols don’t have any influence on Terra’s TVL, unlike the other existing layer 1 blockchains. Furthermore, Krion emphasized how happy he is with how LUNA tokens maneuvered their ways in the stabilization of the protocol to generate the yield.

On the other hand, it is worth giving a spell check on the LUNA token performance in the market. Among the odds, the token became part of the strongest cryptocurrencies with an incredible performance in the crypto space.

Bitcoin (BTC) and Ethereum (ETH) traded very tightly with a monumental market sensation everywhere. Solana (SOL), Avalanche (AVAX), and LUNA itself gave a competitive look to their crypto portfolio as some traders called them the SoLunAVax trio.

Disclaimer:The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information 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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Terra Becomes the Second-Largest DeFi Protocol, Dethrones BSC With TVL

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