The Terra ecosystem has attracted many users fortis decentralized finance ecosystem. As a blockchain with a few dozen protocols, the network continues to grow by leaps and bounds. It is now the second-biggest chain for TVL in decentralized finance, thanks to an increase of over 55% this week.
Terra DeFi Pops Off
While it will be tough for any blockchain ecosystem to compete with Ethereum for DeFi TVl, there is still a healthy degree of competition among networks today. Many people assumed that binance Smart Chain would become the second biggest decentralized finance network. Although BSC has noted substantial growth, it loses traction to other ecosystems.
Maintaining its lead over Avalanche in DeFi TVL will be possible for Binance Smart Chain. However, Terra has surpassed it, which saw a weekly TVL increase of over 55.5%. That is a tremendous amount, considering the ecosystem is home to 13 protocols, compared to BSC’s 225. Quantity and quality are two very different things, especially in cryptocurrency.
Terra is now the second-biggest blockchain for decentralized finance thanks to this substantial increase. Mainly Terraswap saw an influx of liquidity this week, as its holdings nearly doubled. There is also strong growth by Anchor, Lido, Nexus Protocol, and Loop Finance. Most of the liquidity resides with Anchor, although Lido is quickly rising the ranks.
One has to wonder how sustainable this momentum will turn out to be. However, popular platforms like Uniswap, Sushiswap, and others have not explored opportunities on Terra just yet. If one of them decides to do so, there will be even more TVL to go around. Currently, nearly all projects are Terra-only, except for Lido and Mirror.
LUNA Price Surpasses $80 Again
As the Terra ecosystem grows, so does interest in the native LUNA currency. Thanks to substantial price momentum, one LUNA is now valued at over $81 and noted an all-time high of $84.47 just a few hours ago. The currency has a monthly price gain of over 79%, making it one of the strongest performers despite the recent bear market affecting most top markets.
All signs point toward a healthy future for the Terra ecosystem. Ongoing DeFi TVL growth shows a growing demand for exposure to this ecosystem and everything it has to offer. Moreover, the native decentralized finance protocols are interesting, as it confirms the ecosystem doesn’t rely on existing protocols expanding to another chain.
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