A new report from crypto ranking platform CoinGecko is shedding light on one Ethereum (ETH) rival that tripled its share of total value locked (TVL) in the decentralized finance (DeFi) sector after the collapse of the Terra (LUNA) ecosystem.
In the latest quarterly report, CoinGecko says DeFi saw a 55% decrease in TVL between April to June of this year, largely driven by the implosion of Terra.
The TVL of a blockchain 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.
With the absence of Terra, other Ethereum challengers like Solana (SOL), Avalanche (AVAX) and Polygon (MATIC) have maintained their share of TVL across DeFi in the second quarter of this year in line with the market downturn. Ethereum itself witnessed its share of TVL grow from 54% to 60% during the same period.
However, CoinGecko says Tron’s (TRON) share of TVL has tripled from 2% to 6%, largely due to the rise of its algorithmic stablecoin Decentralized USD (USDD).
USDD was launched in April in an attempt to decentralize the relatively centralized stablecoin sector of the crypto industry.
Tron founder Justin Sun said,
“TRON DAO joined hands with major blockchain players to launch USDD (Decentralized USD), the most decentralized stablecoin in human history, making finance accessible to all by applying mathematics and algorithms.
As a result, it enjoys perpetual existence without relying on any centralized entities.”
According to data sourced from DeFiLlama, CoinGecko says DeFi’s TVL sits at $79 billion, down 59% from the year’s high of $194 billion in January.
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