Terra total value locked (TVL) is on the rise. The network had quickly grown to become one of the top decentralized finance (DeFi’0 contenders in the space, surpassing well-established and popular networks like the Binance Smart Chain (BSC). While Terra’s growth has come from its unique staking offerings to users, it has also received a significant boost from its decision to add Bitcoin to its treasury.
Terra Buys Bitcoin
Terra had announced that it planned to purchase Bitcoin to serve as the reserve currency for the network and by the admission of founder Do Kwon, the network had already begun purchasing bitcoin before the announcement. Terra’s move to make the digital asset the default reserve up to the tune of more than $1 billion had drawn more attention to the network and with the buying spree, the network has seen even more interest.
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One of the ways these have been apparent has been how fast the TVL has been growing. The decision to purchase bitcoin was announced last week and in this time, the network’s TVL has grown to more than $2 billion.
When the announcement was made, the total TVL on the Terra network was around $26 billion. Less than two weeks later, this number has grown as high as $28.7 billion, reaching a new all-time high.
With this value, Terra sits in front of big players in the space like BSC, Avalanche, Solana, and Fantom. The total value locked of $28.7 billion puts it in second place, behind Ethereum, which remains the biggest DeFi platform to date.
LUNA trading at $104 | Source: LUNAUSD on TradingView.com
This comes after it was confirmed that the Luna Foundation Guard’s bitcoin wallet now holds a whopping 24,954.95 BTC, which was valued at $1.1 billion. On-chain data showed that the foundation’s wallet had made large purchases in the days following the founder’s announcement. A decision that Kwon explained was because “Bitcoin is the only hard reserve asset that’s been proven out of the digital currencies.”
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Following the purchases, the price of LUNA, Terra’s native token, had also rallied, touching as high as $106. The Terra network continues to grow as more DeFi users move to leverage the opportunities provided by it.
Anchor remains the most dominant protocol on the Terra network, accounting for 52.38% of all TVL as of the time of this writing. In total, there is $15.04 billion in TVL on the Anchor protocol alone which is available on both the Terra and Avalanche networks.
Featured image from The Game Locus, chart from TradingView.com