September 29, 2022

DeFi situation after Terra (LUNA) failure


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The Terra ecosystem held about 15% of the entire DeFi market share before its collapse. This fact made the coin the second largest asset in the decentralized finance segment. Alas, the whole ecosystem with a capitalization of more than $40 billion went bankrupt.

Prior to these events, the Ethereum network accounted for about 55% of all DeFi activity, with the most demand being (data as of May 6, 2022):

BNB Chain – 6%.
Avalanche – 4%.
Solana – 3%.
Fantom – 2%.
Tron – 2%.
Now the situation has changed, and the share of Ethereum in the DeFi sphere has increased to 61%. BNB coin holds 7.6%, Tron share is 6%. Less well-known Harmony – 5.2%. Surprisingly, Fantom and Avalanche have lost some of their positions, while Solana is stable at 3%. It is noteworthy that new players appeared on the arena:

Arrakis Bank (liquidity management protocol).
Iron Bank (inter-protocol lending platform).
Euler (Ethereum based lending platform).
Many experts note that the Tron network, with its new USDD asset, is actively building up its own positions.

Despite the fact that stablecoins are the fundamental mainstay of the decentralized finance market, it seems that USDD consumers are attracted primarily by its profitability, and not by its technical advantages. In particular, the network offers investors a return of more than 10%.

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