Terra Became the Second Largest DeFi Platform for Two Reasons

<p>Since January of this year, the DeFi sector has increased by more than 1300 percent, with Terra serving as a critical component.</p> <p>Nobody would have predicted a month ago that Terra, a relatively unknown blockchain, would end the year with the second-largest LTV in the DeFi sector. This is a 200 percent increase in the value of Terra's native token, $LUNA. However, what precipitated this flight?</p> <p>Terra currently has 13 DeFi protocols, with a 43 percent increase in the last seven days, according to DeFillama. Terra's TVL, on the other hand, was $ 9.1 billion 30 days ago, a 220 percent increase. This press will explain how this could happen and how you can immediately participate in the most critical Terra DeFi protocols.</p> <p>A Summary of the Terra Ecosystem</p> <p>When this press was prepared, Terra had 13 DeFi protocols totalling $20.4 billion in TVL. Additionally, only two protocols, Lido and Mirror, are supported by other blockchains, indicating that this blockchain is still in its infancy and has a long way to go before achieving widespread adoption.</p> <p>Anchor, on the other hand, has accumulated 43% of Terra's total TVL, increasing its TVL by 39% over the last seven days. To illustrate how strong Terra DeFi protocols are at the moment, let's compare how much TVL each protocol in the first four blockchains has on average. Naturally, these are fictitious figures:</p> <p>Each protocol costs $0.42 billion. Consider the fact that Ethereum contains 369 DeFi protocols.</p> <p>$1.57 billion for each protocol on Terra.</p> <p>Each protocol will cost $0.72 billion. 232 DeFi protocols are supported by BSC.</p> <p>For each protocol, Solana will receive $0.3 billion. Solana is in possession of 41 Defi protocols.</p> <p>However, how has Terra absorbed this amount of liquidity in just 13 protocols, gaining traction on well-known blockchains such as BSC (Binance Smart Chain) and Solana?</p> <p>1. Extremely High Yields of DeFi</p> <p>We will demonstrate how profitable Terra protocols can be in