Terra Is Now the Second-Largest DeFi Network
Terra Is Now the Second-Largest DeFi Network
$LUNA is really in a DeFi going to the moon moment.
With nearly $8 billion stolen in crypto scams in 2021, DeFi hasn’t lost sleep over it. In fact Terra has been trading very well in recent weeks. Just look at coinmarketcap.com, where Terra is now ranked 7th with market cap of $35 Billion, up 48.5% in the past week.
Terra, a decentralized payments network, has become the second-largest blockchain for decentralized finance (DeFi) in terms of total value locked, Coinbase reported. Terra is behind Ethereum and crossed Binance Smart Chain (BSC) this week, according to the report. Terra has 13 projects at over $18.2 billion in value, which comes out to more than $1.4 billion per protocol on average, the report stated.
Terra’s motto is programable money for the Internet. Terra is a public blockchain protocol deploying a suite of algorithmic decentralized stablecoins which underpin a thriving ecosystem that brings DeFi to the masses.
Ethereum retains the DeFi crown with $152 billion in value locked on 361 protocols. DeFi projects rely on smart contracts instead of middlemen for financial services such as lending, trading and borrowing.
On Terra, 13 projects lock over $18.2 billion in value, data from analytics tool DeFiLlama shows. Terra and Solana have had good years in 2021 and are now household names.
Some attribute LUNA’s success to both its token mechanisms and use in DeFi applications.
So how well did Terra grow in 2021? The figures are a nearly 42,000% increase compared to December 2020, when DeFi projects on Terra held $42 million in value.
LUNA was one of the strongest-performing cryptocurrencies in the past month even as the broader market tumbled. Bitcoin and ether have traded in a tight range since November 2021, but tokens of Ethereum rivals Solana and Avalanche have seen gains as traders placed bets on them outperforming Ethereum.
The network's native LUNA token has also reached a new all-time high of $96.22.
I’m going to be covering Crypto news more frequently in 2022 so stay tuned.