DeFi accounted for about 15% of the market share in Terra’s ecosystem before it collapsed last month. This makes it the second largest center for all decentralized finance, according to DeFiLlama data. But once the $40 billion network goes bankrupt, where do investors run? When Terra was still alive and active on May 6th, 55% of all DeFi activity was in Ethereum, 6% in BNB Chain, 4% in Avalanche, 3% in Solana, 2% in Phantom and 2% in Tron.
Those data now seem to be quite different. Ethereum, which now has a market share of 61 percent, BNB, which now has a market share of 7.6 percent, and Tron, which now has around 6 percent market share, were the biggest winners. Lesser-known company Harmony currently holds a 5.2 percent market share.
Surprisingly, Phantom and Avalanche actually lost some market share in the meantime, while Solana held steady at 3%. Projects such as Arakis Finance (a liquidity management protocol), Iron Bank (a protocol-to-protocol lending platform), and Euler on Ethereum (another lending platform) have been instrumental in absorbing new money into DeFi.
Projects such as PayNetwork (a validator network), Wombat Exchange (a Curve-like decentralized exchange), and TokenForm (a yield aggregator) have performed well on the BNB chain over the past month.
TRON emerged as a winner
Despite the fact that Tron has nearly doubled its market share since Terra’s demise, it has done so with essentially the same product as Terra’s UST: USDD.
USDD is a new algorithmic stablecoin that works similar to the mint and burn process of Terra’s UST. The Tron DAO is currently buying Bitcoin, Tron and USDT as collateral. As a result, it’s a strange mash-up of multiple modes.
Despite the fact that stablecoins are DeFi’s bread and butter, consumers are flocking to USDD for its high returns rather than its merits as a decentralized currency. For example, Tron on USDD’s site promises some pretty extraordinary double-digit payouts on a few different platforms.