Terra total value locked (TVL) is on the rise. The network had quickly become one of the foremost decentralized financial institutions (DeFi’0 contenders in the space, surpassing established and popular networks such as the Binance Smart Chain (BSC)). , 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 buy Bitcoin to serve as a reserve currency for the network, and by the permission of founder Do Kwon, the network had already started buying bitcoin before the announcement. Terra’s move to make the digital asset the default reserve at more than $1 billion had drawn more attention to the network, and with the shopping spree, the network has grown even more.
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One of the ways these have become apparent is how quickly the TVL has grown. The decision to buy 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, total TVL on the Terra network was approximately $26 billion. Less than two weeks later, that number has risen to $28.7 billion, setting a new all-time high.
With this value, Terra sits ahead of major players in the space such as BSC, Avalanche, Solana, and Fantom. Its total locked-down value of $28.7 billion places it second, behind Ethereum, which remains the largest DeFi platform to date.
LUNA trades for $104 | Source: LUNAUSD on TradingView.com
This comes after it was confirmed that the Luna Foundation Guard’s bitcoin wallet now contains a whopping 24,954.95 BTC, valued at $1.1 billion. Data on the chain showed that the foundation’s wallet had made major purchases in the days following the founder’s announcement. A decision Kwon explained was because “Bitcoin is the only hard reserve asset proven from the digital currencies.”
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After the purchases, the price of LUNA, Terra’s original token, had also risen, reaching as much as $106. The Terra network continues to grow as more DeFi users move to take advantage of the capabilities it offers.
Anchor remains the most dominant protocol on the Terra network, accounting for 52.38% of all TVL at the time of writing. In total, there is $15.04 billion worth of TVL on the Anchor protocol alone, which is available on both the Terra and Avalanche networks.
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