The Tera Total Value Lock (TVL) fell sharply in the second week of May due to the overall bearish market, with several chains seeing low investor interest in DeFi.
After Ethereum, Terra came in as the second blockchain with the most TVLs in March and April.
Be. According to[In]Crypto research, Terra has lost 78% of the total value locked since the first day of 2022. On January 1, Terra had TVL of approximately $18.4 billion, and this decreased to approximately $4.02 billion on May 11, 2022.
Terra is a protocol that deploys a suite of algorithmically decentralized stable coins that support a thriving ecosystem that brings DeFi to millions. As one of the leading cross-chain protocols in the crypto finance space, it maintains a growing ecosystem that includes over 100 projects in the Web3 and DeFi space.
Why the decline in TVL?
Many believe that Terra TVL crashed this week as dApps plunged to new lows in its ecosystem.
Decentralized lending and lending platform Anchor, for example, has lost over 80% in the past month, while staking platform Lido has also shed over 98% of its TVL in the same period.
Automated DEX protocols Astroport and TerraSwap have lost over 90% and 80% of their total locked values, respectively.
Others that contributed to the drop in the total locked in value include, but are not limited to, Mirror, Pylon Protocol, Mars Protocol, Risk Harbor, Spectrum Protocol, Aperture Finance, Stder, Loop Finance and PRISM Protocol.
After plunging over $14 billion thanks to the above dApps, Terra has also lost its position in line with Binance Smart Chain, Avalanche, Solana, and TRON.
Also, despite declining TVL, Terra still holds the lion’s share of the closing price on Polygon Phantom, Waves, Near and Chronos.
Luna Price Feedback
LUNA opened in 2022 with a trading price of $85.51. The coin reached an annual high of $119.18 on April 5 and was exchanging hands for $1.06 as of writing.
Overall, this equates to a 98% decrease in the price of LUNA since the beginning of 2022. On Thursday, Terra Chain announced that it has resumed operations after a two-hour halt on its block production.
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