Before the painful implosion last month Terra ecosystem Enjoyed about 15% of all DeFi market share.. According to DeFiLlama data, this has become the second largest hub in all of decentralized finance.
But where do they run when the $ 40 billion network collapses and investors head for the hills?
First, let’s take a look at protocols such as Ethereum, Avalanche, Solana, Fantom, Tron, and Binance’s BNB chain (formerly known as BSC).
May 6th Terra Still alive and kicking, Ethereum accounted for 55% of all DeFi activities, BNB chains 6%, Avalanche 4%, Solana 3%, Phantom 2% and Tron 2%.
Today, those numbers look very different. The biggest winner is Ethereum, market share Currently 61% BNB share It is 7.6%, and Tron currently has nearly 6%. The lesser-known harmony is currently enjoying 5.2%.
Interestingly, Phantom and Avalanche actually lost a bit market During this time, Solana was stable at 3%.
After combining DeFiLlama, you can also identify which particular project some of this money goes to.
At Ethereum, projects such as Arrakis Finance (liquidity management protocol), Iron Bank (protocol-to-protocol lending platform), and Euler (another lending platform) play a key role in absorbing new funds within DeFi. I’ve done it.
As for the BNB chain, projects such as pNetwork, Wombat Exchange, and TokensFarm have all flourished in the past month.
Despite all the maximalism in this area, the wide variety of types of projects that are gaining traction across different chains is a healthy phenomenon.
Tron’s USDD is very similar to Terra’s UST
This is not the case with Tron.Tron is essentially twice that market share Since then Terra Collapsed, it did so with virtually the same product as Terra’s UST: USDD.
USDD is a new algorithm stablecoin that implements a similar mint and burn mechanism. TerraUST. Recently, Tron DAO has also purchased Bitcoin, Tron and USDT as collateral. So it’s a strange fusion of different strategies.
Stablecoin is DeFi bread and butter, but users seem to be rushing to USDD not because of the benefits of a decentralized dollar, but because of the huge yields they can earn. For example, on the USDD site, Tron promises fairly exorbitant double-digit yields on several different platforms.
And thanks to this promise, these platforms are driving Tron’s DeFi activity. JustLend, a lending platform that can earn 17% on USDD, has seen a 120% increase in total Value Lock (TVL) over the past month. Elsewhere, at Sun.io, users can earn up to 21%. Its TVL also surged by more than 230% over the same period.
These yields may seem attractive at first glance, but given how similar the placements are, users obviously need to be very careful. Terra And its anchor protocol.
They are also the only two DeFi platforms in Tron’s eight-project ecosystem that are currently showing signs of growth. The rest are all badly down.
Immediately behind these large yields is the USDD ballooning. market Capitalization.
According to CoinMarketCap, the USDD rose more than 200% last month, but with a market capitalization of $ 703 million, it’s still well off the UST’s $ 18.6 billion peak.
nevertheless.The fact that Tron has essentially doubled its value since the collapse of Tron Terra It’s a pretty headline.
Perhaps even more noteworthy is that it enjoyed its growth by taking advantage of many of the same smoldering ingredients that result from it. TerraSuccess. You really can’t make up for this.
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