More than 60 projects are preparing to launch in the next six to eight weeks, says Do Kwon, a co-founder at Terra Network. He highlighted that with Columbus-5 now live, more than 100 projects want to be launched on the Terra Network in early 2022.
Moreover, Terra’s LUNA total locked value (TLV) has surpassed popular smart contracts which are backed by blockchain networks with the likes of Avalanche, Fantom, Binance Smart Chain, and Solana. Likewise, it has kicked off March with $22.95 billion in TVL. It should be noted that Terra Network had stepped into February 2022 with $13.4 billion. The platform has since seen massive gains, taking on some popular blockchain networks head-on.
Terra, since its establishment in 2018, is helping facilitate the adoption of digital assets. Within a few years, it has hosted over 73 projects and continues to deploy DeFi protocols and DApps. Terra recorded a $2.5 million TVL in November 2020 and surged past $980 million by the end of Q1 2021. The network saw a staggering $39,200% increase in just a four-month period. Terra’s TVL increased significantly by 248%. It closed out with an all-time high of $3.42 billion in June.
Analysts attributed Terra’s 2022 growth to Nexus Protocol (PSI), Stader, Spectrum Protocol (SPEC), Astroport (ASTRO), Anchor (ANC), and Lido (LDO). The biggest gains come from Stader with a 150% increase in TVL. The spike is also credited to Terra’s stable coin TerraUSD (UST) being backed by a $1 billion bitcoin reserve. UST is fixed to the US dollar through a minting and burning process for LUNA – Terra’s native token.
If the price of the stable coin declines below $1 per coin, the UST can be swapped for LUNA. This provides arbitrage gains for investors.