Terra Luna Overtakes BSC to Become the Second Biggest Chain in terms of TVL.

Data from DeFi Llama reveals that Terra Luna has continued its wild growth, becoming the second largest blockchain in terms of total value locked. Terra is also built on the Cosmos Network, allowing for more scalability, low transaction costs and high throughput.

Current Rankings

*Ethereum (ETH): $150.02b

*Terra (LUNA): $17.07b

*BSC (BNB): $16.55b

*Solana (SOL): $11.88b

*Avalanche (AVAX): $11.83b

Let's look at some of the main reasons for this unprecedented dominance and where the TVL is coming from.

UST

"One of the major developments from the network’s Columbus-5 upgrade in October is a new design for keeping stablecoins pegged to their fiat value: whenever UST is minted, LUNA with the same amount of value is burned."

As a result, at least 93 million Luna tokens have been burned in the production of UST. Not only does UST have clear backing, users can also use that UST to lock in to multiple DeFi offerings with great incentives.

DeFi Protocols and User incentives

Astroport recently launched a 'lockdrop' event that allowed users to lock Luna is order to receive a drop of the ASTRO token. This has led to more demand for Luna as users look to get a higher reward payout.

Anchor, the biggest protocol on Terra Luna allows for users to receive up to 20% back on their staked UST. This is one of the best APYs available on the market for stablecoins, and has helped add to the high rate of TVL locked by Luna.

Abracadabra.Money, a multi-chain decentralized lending platform, launched a yield earning product called Degenbox earlier this month. The product allows users to deposit UST as collateral in order to receive yields.

TLDR: Luna is fast and cheap compared to other top Layer 1 Blockchains. It offers the UST stablecoin, which burns Luna each time it is created. Luna offers DeFi Protocols that give users great incentives.