Terra (LUNA) has reached $30 billion in total value locked in its network, an increase of 130 percent in just two months, the second largest DeFi ecosystem in the world.
Following the worst altcoin devastation in months, the cryptocurrency market has begun to show signs of life, and Terra (LUNA), a unique high-performance smarts contract platform, has continued to rally.
For the first time, the total value of assets locked (the sum of the USD-denominated prices of all cryptos in active Terra-based dApps) has topped $30 billion.
According to figures from prominent DeFi analytical dashboard DeFiLLama, Terra’s TVL metrics are over $30.25 billion, making it the second largest Decentralized Finance (DeFi) ecosystem.
In the last month, the Terra Proof-of-Stake (PoS) blockchain network raised its total value locked (TVL) by about 40%, the largest of any significant DeFi player.
The DeFi market’s explosive rise highlights the promise of digital currencies and decentralized platforms to give an alternative to the old finance paradigm, which has been steadily consolidating for decades, strangling innovation and diminishing the importance of financial inclusion.
DeFi’s recent expansion has been incredible. The DeFi derivatives market’s TVL was around $875 million in late 2020, but it is now worth more than $200 billion. In just over a year, the DeFi market has grown by over 23,000 percent.
The LUNA Foundation Guard (LFG) intends to increase its Bitcoin reserves to $3 billion, with a long-term goal of increasing the pool to $10 billion, which might result in a boom in UST demand, permanently removing additional LUNA tokens from active production.
The purchase of bitcoin to back TerraUSD (UST), a Terra network stablecoin, had a substantial and indisputable impact on the Bitcoin community and, quite probably, the price.
The narrative isn’t simply favoring Bitcoin as LFG accelerates their BTC purchases; the sentiment has shifted and propelled the ascent of Terra’s native token LUNA, inevitably boosting the DeFi ecosystem to new heights.