Terra becomes the second-biggest DeFi chain in terms of total value locked after Ethereum.
Terra (LUNA), an open-source stablecoin network, hit an all-time high of $20.05 billion in total value locked, or TVL, across its 13 product offerings, according to industry data. On Dec. 1, Terra's TVL was at $11.9 billion, signifying a 68% increase in less than a month. This means that the platform's users are investing in large quantities into the protocol to receive staking rewards.
The price of LUNA, Terra's native token, is also steadily trending upwards, trading above $94 with a 31% increase in one week, according to Cointelegraph Markets Pro. The coin now has a total market capitalization of $34.8 billion, placing it in the top 10 crypto projects.
LUNA continues to be one of crypto's hottest performers. Source: Cointelegraph Markets Pro
In terms of TVL, Terra is now the second-largest DeFi network below Ethereum and above Binance Smart Chain. For reference, BSC has 225 products in its DeFi ecosystem and a TVL of $16.7 billion, which has been decreasing all month, while Ethereum has $155.7 billion in TVL.
Related: Price analysis 12/22: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE
Terra is an application-specific blockchain built on the Cosmos SDK and Tendermint consensus. Users can mint U.S. dollar-pegged stablecoins and convert those stablecoins into LUNA, the native staking and governance asset of Terra.
Within the Terra ecosystem, savings protocol Anchor (ANC) is topping the charts for the application with the highest TVL, which at the time of publication is $8.7 billion, according to DeFi Llama. Activity within ANC has most likely contributed to Terra's value increase.