Even as DeFi TVL and Ethereum burn rates slow, Terra and Fantom are surging. Terra has increased by 54% in the last seven days, while Fantom has increased by 21%.
According to CoinGecko, six of the top 100 largest coins by market cap are up more than 50% in the last seven days, and 40 are up double digits for the week. After falling below $100 billion on February 22, the total DeFi market worth is now around $122 billion.
According to DeFiLlama, the increase of the sector’s total value locked (TVL) has been more modest, with Ethereum and Solana up just 5% from their respective local low, and Binance Smart Chain and Polygon up 3%.
Ethereum’s burn rate has also dropped, with the average for the past week resting at 3.68 ETH per minute, a reduction of more than two-thirds from its January highs.
One issue is the rapid decline in the sector’s market cap during the recent downturn, with most leading tokens losing more than half of their value. In contrast, in late November and early February, the combined DeFi TVL fell by 27%.
Which protocols are pushing Terra?
Terra continues its ascent to the top of the DeFi rankings. Its TVL has soared to fresh all-time highs of $23.5 billion, nearly doubling its value from five weeks ago.
The top four protocols on the network have seen significant growth in recent weeks. Anchor, Terra’s largest protocol, has gained 63% in 30 days, followed by Lido, which has gained 68%, and Stader, which has gained 179%. Anchor and Lido, on the other hand, account for 82.5% of Terra’s TVL, indicating that the network’s success has been fuelled by the rise of just a few protocols.
Anchor’s rise comes after the Luna Foundation Guard (LFG) invested $450 million in the protocol to keep its roughly 20% yields subsidized. The move came after a February 8 governance proposal that asked the LFG to intervene and save the country’s treasury from running out by the end of February. Anchor will be self-sufficient by November, according to researcher ‘N3mo.’
What is Fantom’s story?
In recent days, Fantom has also experienced rapid growth. Fantom’s TVL is now worth $11.65 billion, up from $7.25 billion on February 22.
Solidly and Solidex, a new DEX and yield farming technique from Yearn Finance founder Andre Cronje, are responsible for the majority of Fantom’s revival. In the last seven days, the two protocols have increased by 500% and 718%, respectively, adding about $4 billion to Fantom’s TVL.
Multichain, the network’s most popular dApp, had a solid week, with a TVL growth of more than 33.5%. Multichain now has a TVL of almost $6 billion.