DeFi TVL has been gaining some appreciating momentum after it suffered a major upset in the past two weeks. On today alone, there has been an increase of 3.46% in the existing value of DeFi’s TVL. While the TVL value has increased there is yet another interesting event that took place today as well. Binance Smart Chain was having the most value locked in its TVL till 21st December, 2021, however, it was past now. Currently, Binance Smart Chain has been left behind by the network known as “Terra” in terms of having the most value locked in its TVL for DeFi.
The DeFi network of Terra has been surging to a great extent only because of the “LUNA”, which is Terra’s own digital asset. LUNA’s market is rather bullish against its rivals and within the past 10 days, its value has surged by almost 45%. The surge also made it possible for LUNA to witness its All-Time High (ATH) value in the recent times. Resultantly, LUNA has joined the top ten forces by their market valuation in the crypto asset industry by securing 9th position amongst them. It was the achievement of ATH, which even led LUNA to leave behind its traditional rival i.e. Binance Smart Chain (BSC).
BSC however dominated Terra throughout the year in terms of TVL and was sitting on the 2nd spot for a very long time. But BSC’s second position has been overtaken by Terra. As of today, the TVL for BSC’s DeFi is valued at US$ 16.67 Billion. On the other hand, Terra is sitting at the 2nd place now with an increased TVL of more than US$ 19.34 Billion. This simply means that as of 22nd December, 2021, Terra’s TVL is 16% more than that of BSC. If BSC has to reclaim its title back, then it has to increase the TVL at least by more than 17%.
The prominent factor for creating the difference for Terra was solely the digital asset of “LUNA” alone. Had the value of LUNA not surged considerably, BSC would have continued to hold the second place in the DeFi sector.
Amongst entire chains of DeFi projects, Terra is making up 7.79% of the global TVL in the DeFi sector. On the other hand, the circulation of UST is also increasing significantly, which again is a stablecoin emerging from Terra’s ecosystem. UST also frustrated the positions secured by leading stablecoins in the digital economy. For instance, DAI was the 4th biggest stablecoin a week ago. As of now, DAI has moved downward at number 5th spot while UST has become the 4th largest stablecoin amongst entire stablecoins. Even the value of UST too has swelled up by 29.2% in the recent times.