Terra beats BSC to become the second largest blockchain for DeFi

Decentralized finance (DeFi) is a system in which financial products are made available on a public decentralized blockchain network by removing intermediaries in financial transactions through the use of technology. Since the beginning of the year, DeFi has seen significant growth, with over $250 billion in total value locked up.

The open-source blockchain payment platform Terra is now the second-largest blockchain for decentralized finance (DeFi) protocols (TVL). Terra, crossed Binance Smart Chain (BSC) to obtain the second position this week in terms of value locked.

Binance is a leading online cryptocurrency exchange where users can trade cryptocurrencies which also has its own blockchain-based token BNB(Binance Coin). BSC was the second-largest blockchain network in terms of DeFi TVL throughout the year.

According to statistics, nearly $18 billion in value is locked on just 13 projects on Terra, averaging $1.4 billion for each protocol, compared to $73 million per protocol on BSC, which has 16.5 billion locked on 225 protocols. Whereas in last year, DeFi projects on Terra held just $42 million in value.

As the network overtakes Binance Smart Chain, its native LUNA token has also reached a new all-time high of $84.92. The diminishing price of LUNA, together with new DeFi protocols on Terra has helped the network reach the milestone.

Terra has surpassed major blockchains including Solana, Avalanche, and Tron in recent months. Anchor, a savings protocol offering low-volatile yields on Terra stablecoin deposits is currently leading the TVL charts on Terra, along with Lido in the next place with over $5.4 billion in TVL, and the decentralized exchange (DEX) Terraswap, with 1.96 billion in TVL in the third place.