Terra’s Defi value hits record high $21.8 billion, what does it mean for Luna

Terra’s Defi value hits record high $21.8 billion, what does it mean for Luna
Terra, the second-largest Defi blockchain, saw its total value locked (TVL) hit a new high on Tuesday amid a rising number of deposits.
Terra's Defi value hits record high $21.8 billion, what does it mean for Luna?

Defi Llama data showed that TVL on the Terra blockchain increased by roughly 5% to a new high of $21.8 billion. The blockchain is now behind only Ethereum in terms of TVL, although the gap is astronomical ETH’s TVL is $81.6 billion.

The two major Defi liquidity platforms on Terra, Lido and Anchor Protocol, had the biggest increases in TVL, about 8%, and 10%, respectively. Anchor also maintains its dominance in Terra’s Defi market, accounting for 76% of TVL.

Terra’s native token, LUNA, increased in tandem with the blockchain’s TVL.

Terra’s increasing Defi value good for LUNA

Given that a bulk of engagement with Terra’s platform occurs through its native token, LUNA tends to profit from the increased activity. In the past 24 hours, the token has gained 8.5% and is trading at $96.46.

The recent gains also helped LUNA surpass Ripple (XRP) to become the seventh-largest cryptocurrency at a $33.5 billion market capitalization The token saw outsized trade volumes of $2.5 billion in the last 24 hours.

Because the majority of TVL inflows were concentrated towards Anchor Protocol, the platform’s governance token, ANC, also increased by 9%. Anchor presently has one of the highest deposit yields in the Defi space, at 20%. The platform’s high yields are a major driver of inflows to it.

Trading volumes for its stablecoin, UST, have increased as a result of increased engagement with Terra’s Defi platform. The total amount of USTs in circulation is now above $18 billion.

Concerns over sustainability

While Terra’s Defi interest has grown in recent weeks, there is still concern about its sustainability.

Anchor, for an instance, has a disproportionately high number of depositors compared to borrowers, which means that paying a 20% yield on all deposits will eventually deplete the platform’s reserve.

While the community has taken steps against this by implementing a dynamic yield, the number of depositors continues to grow at a staggering rate. This could also eventually drive yield to market-average levels, making Anchor less appealing to investors. The platform is also very exposed to liquidity shocks because of its outsized volume of deposits.

Terra's Defi value hits record high $21.8 billion, what does it mean for Luna?

Despite this, Terra founder Do Kwon has been consistently increasing UST reserves to avoid a situation like this. Kwon plans to back UST with $10 billion in Bitcoin.


https://link.space/@tok99toto ladangtoto link alternatif ok88 deposit dana ladangtoto rtp maxwin k86toto login tok99toto https://thewatchmakerproject.com/ https://mannawasalwa.ac.id/3/ladang-toto/ https://mannawasalwa.ac.id/3/s-mania/ https://bintangara.tabalongkab.go.id/public/klik88/ https://klik88.bintangara.tabalongkab.go.id/ https://ladangtoto.sakt1.co.id/ https://manyao.djmusicvibration.com.in/ https://ww.pn-jayapura.go.id/ ladangtoto slot thailand login k86sport tok99toto login https://slot-toto.pa-sungailiat.go.id/ http://103.3.46.79/funmania/ http://103.101.52.68:8005/kaizen88/ https://link-fun77toto.threeways.id/ https://bandar-fun77toto.diansigmaglobal.id/ https://ptbm.co.id/k86toto/ https://sisfo.diskominfo.pa-malangkota.go.id/ https://ftp.fhunwiku.ac.id/ https://103.181.182.174/ https://www.forex.ntu.edu.tw/tok99/ http://nkquoc.ntt.edu.vn/ https://kgaswe.ac.bw/adm-pulsa/ https://szeus.bintangara.tabalongkab.go.id/ https://ptbm.co.id/togel-hongkong/ https://sdnbeneryk.sch.id/s-88/ https://pta-bali.go.id/img/s-macau/ https://pta-bali.go.id/img/s-x500/ https://pta-bali.go.id/img/angka-jitu/ https://sdnbeneryk.sch.id/s-5k/ https://pta-bali.go.id/img/s-jepang/ http://103.3.46.79/888slot/ https://inspektorat.bondowosokab.go.id/assets/s-thailand/ https://pta-bali.go.id/img/s-taiwan/ https://fun77.bintangara.tabalongkab.go.id/ https://yppdb.or.id/s-macau/ http://103.3.46.79/dana-fun77/ https://yppdb.or.id/pg-soft/ https://galvindo.co.id/fun77toto/ http://103.3.46.79/padma188/ http://103.3.46.79/gateszeus/ https://pa-sukabumi.go.id/img/fun77toto/ https://yppdb.or.id/ladang-toto/ https://pa-blambanganumpu.go.id/img/s-mahjong/ https://yppdb.or.id/ying77/ http://103.3.46.79/slot777/ http://103.3.46.79/slot88/ http://103.3.46.79/slot77/ http://103.3.46.79/dewatoto/ http://103.3.46.79/dewaslot/ https://pa-blambanganumpu.go.id/img/s-dana/ https://pa-blambanganumpu.go.id/img/s-jp/ http://103.3.46.79/hokifun/ http://103.3.46.79/gopayfun/ http://103.3.46.79/danafun/ https://yppdb.or.id/data-sydney/ https://smartech.co.id/fun77toto/ http://161.97.112.139/ https://yppdb.or.id/axiebet/ https://yppdb.or.id/s-bri/ https://yppdb.or.id/s-toto/ https://yppdb.or.id/s-jepang/ https://pa-blambanganumpu.go.id/img/joker-123/ https://yppdb.or.id/ladang-duit/ slot thailand http://103.3.46.79/rumah258/ http://103.3.46.79/megaforwin/ http://103.3.46.79/asia188/ http://103.3.46.79/66kbet/ http://103.3.46.79/gb777/ http://103.3.46.79/gudangtoto/