Investors have frozen $ 17.07 billion in various DeFi projects of the Terra blockchain. This figure, Total Value Locked (TVL), turned out to be higher than that of Binance Smart Chain (BSC), which once ranked second after Ethereum, the leader and founder of the decentralized finance industry.
The BSC blockchain began to rapidly lose customers after the cryptocurrency market crash in May, which plummeted the value of the Binance Coin (BNB) utility token by 70%.
As can be seen from the graph, BSC’s TVL investments in the second half of the year “froze” within $ 16-20 billion, not exceeding this corridor.
Investors did not increase their investments due to the lack of a technological perspective, the centralization of the blockchain and a large number of scams. The BSC network is a copy of Ethereum with an opaque selection of validators. There are only 21 nodes in the network, but even this fact could not save investors from losing funds on numerous scam DeFi projects.
The Terra blockchain (LUNA) is also not without flaws, in particular, the network was unable to achieve a variety of smart contracts. The Anhor project “took” 43% of the investments, 76% of the invested funds of the investors are distributed among the three platforms.
As you can see in the graph above, TVL’s continuous growth began in late September, when the developers activated the Columbus-5 hard fork. This update changed the UST algorithmic stablock model, which is issued against the security of the LUNA utility token. Previously, collateralized cryptocurrency accumulated, but began to be destroyed on October 1.
In addition, issuing UST turned out to be more profitable than issuing DAI, the first algorithmic stablecoin of the cryptocurrency market. It is owned by MakerDAO, which takes interest for posting collateral. Terra, on the contrary, accrues profit on the issue of UST, which can be invested in stock market shares, receiving not only dividends for this, but also staking profits that significantly exceed the bank’s investment return.
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