The collapse of LUNA has been a nightmare for crypto investors as the entire ecosystem has suffered huge losses. This isn’t just a disaster in LUNA, in fact, the DeFi protocol on Terra has wiped out huge market cap from its all-time high seen in April.
According to daphylama On a real-time basis, the total value locked (TVL) in the DeFi protocol on Terra decreased by more than 2% over the past 24 hours to $139.27 million.
On April 5, when LUNA touched an all-time high, Terra DeFi Apps had a TVL of $31.21 billion. Highest TVL Earth According to the data, DeFi apps stood at $31.35 billion as of April 6. Since then, more than $31 billion has been lost in these protocols.
The data shows that every single Terra DeFi protocol has suffered massive losses in a single month, dropping from 93% to 100%.
TVL’s Highest Shared Anchor (ANC) on Terra has declined by over 69% in the last seven days, while the decline has been more than 99% in a month. Risk Harbor and Astroport (ASTRO), who finished second and third in TVL on Terra, lost 93% and more than 99%.
In one month, Terraswap, Spectrum Protocol, White Whale (WHALE) and (SPEC) lost nearly 98%, while Mars Protocol (MARS), Pylon Protocol (MINE), Aperture Finance and Kujira (KUJI) lost nearly 99%. declined. ,
Anchor is a lending and lending protocol that offers crypto natives, fintech companies, and investors a stable high interest rate, yielding up to 19.5% on stablecoin deposits.
Tera’s US dollar-pegged stablecoin TeraUSD (UST) lost its peg 1:1 against the US greenback amid broader bearish markets, a bloody carnage in LUNA and its DeFi protocol. This eventually led to a bloodbath in the crypto market, with even the board leader bitcoin bearing the brunt to such an extent that it fell below the $25,000-mark in the first two weeks of May. Ether has also corrected and is struggling to maintain momentum above the $2,000 level.
Whereas what happened to Luna? It went straight down the hole and reached zero level. Several crypto exchanges took off trading following the dramatic flash-like crash at Luna. It is currently around $0.0001856.
On April 5, LUNA hit an all-time high of $119.18. Since then, LUNA has registered a drop of 100%. According to CoinMarketCap, LUNA has a low return on investment of 99.99%. Simply put, LUNA investors noticed that their assets were only expanding to a fraction or zero level.
Meanwhile, Terra UST is currently trading near its all-time low of $0.05086 which was seen on May 21, 2022. It is currently around $0.05533. UST in Indian Rupee is as cheap as Rs.
According to data from Coinbase, UST is down by more than 58.5% in the past seven days. Whereas in a month it has declined by about 94 percent. The UST has fallen by more than 93 per cent in one year.
Unlike most blockchains, Terra’s ecosystem includes a native algorithmic stablecoin, TeraUSD (UST). Being a scalable, yield-bearing coin, the UST is denominated to the US dollar.
Due to its mining mechanism, which is a decentralized network with its own decentralized currency, Terra fills the need for the DeFi protocol, now also commonly known as TeFi.