Terra [LUNA] gathers momentum as it rolls into the holiday season hitting a record high in total value locked [TVL] of $21 billion.
In early December the TVL was still at $11.9 billion, but as the value of LUNA exploded, the value locked also surged. The traders called it a Santa rally which pushed LUNA’s value a little over $100. This put its year-to-date returns at 14,966%.
The users invested a great deal within the past month to earn staking rewards. This enthusiasm clubbed with Binance’s announcement of adding UST, a stablecoin issues on the Terra network. The rising price, pumped the market capitalization to $35.66 billion.
LUNA’s DeFi journey
Ethereum ruled the DeFi netowrk with a TVL of $155.7 billion. However, Terra has become the second-largest DeFi network as it dethroned Binance Smart Chain [BSC]. BSC was rejoicing as the secon-largest network for a long time but there has been a gradual decline in its TVL through December. With a total of 232 prodcuts in its DeFi ecosystem, BSC currently stood at a TVL of $17.02 billion.
As per data provided by DeFi Llama, over $9 billion was locked in Anchor, a stablecoin-based yiled generating app.
Reportedky, the founder of investment firm Steinberg Invest stated that Anchor was adding to the value perceived in Terra by the investors.
Marvin Steinberg stated,
“A 20% APY [annual percentage yield] on UST deposits through the Anchor Protocol is very appealing because capital flows from price-volatile assets to more risk-averse yield-bearing positions.”
Terra’s decentralized exchange [DEX] TerraSwap witnessed a sharp rise in its TVL to over $2 billion over the past week. Terra’s DeFi ecosystem homed 13 products, averaging at $1.6 billion per protcol on average.
Terra has fought hard for the second place and it may continue to defend it. Menwhile, LUNA and its holders were keen on betting on the futurue of the network.