Ethereum challenger Terra (LUNA) is rallying to new all-time highs just after the large-cap altcoin hit a crucial milestone.
New data from DeFi Llama, an analytics platform focused on decentralized finance (DeFi) and non-fungible tokens (NFTs), shows that Terra has overtaken Binance Smart Chain to become the second-largest blockchain by total value locked.
Terra is a network of several fiat-pegged stablecoins used for e-commerce payments and DeFi services with its reserve currency LUNA underpinning the price of the stablecoins.
According to DeFi Llama, the total value locked (TVL) in Terra stands at $19.32 billion, a staggering rise of nearly 36,250% from its January 1st TVL of just $53.15 million.
The TVL of a blockchain or DeFi protocol represents the total capital held within its smart contracts. TVL is calculated by multiplying the amount of collateral locked into the network by the current value of the assets.
Terra’s ascension to second place comes just two weeks after surpassing layer-1 competitors Solana (SOL) and Avalanche (AVAX) to take number three in the TVL ranking.
According to DeFi Llama, Binance Smart Chain is currently third on the list with $16.69 billion in total valued locked, followed by Avalanche ($12.64 billion) and Solana ($11.82 billion). Ethereum (ETH) still sits at the top with $155.1 billion in TVL.
The explosion in Terra’s TVL comes at the heels of LUNA’s eruption to fresh all-time highs. At time of writing, LUNA is exchanging hands at record highs of $91.76, up over 11% in the last 24 hours and more than 60% from its seven-day low of $57.05.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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