Home / Markets / Cryptocurrency /  Not just LUNA, Terra Defi apps lost over $31 bln from all-time highs of Apr

The collapse of LUNA is engraved like a nightmare for crypto investors as the loss has been heavy across the ecosystem. It's not just a disaster in LUNA, in fact, DeFi protocols on Terra have wiped out hefty market value from its all-time high that was witnessed in April.

As per DefiLlama data, on a real-time basis, the total value locked (TVL) in Defi protocols on Terra, stood at $139.27 million down by over 2% in the last 24 hours.

On April 5, when LUNA had touched an all-time high, the Terra Defi Apps had a TVL of $31.21 billion. The highest TVL in Terra Defi apps was on April 6th to the tune of $31.35 billion, as per the data. Since then, there has been a loss of more than $31 billion in these protocols.

The data showed that every single Terra defi protocol suffered massively with a decline ranging from 93% to 100% in a month.

Anchor (ANC) which accounts for the highest portion of TVL on Terra, has slumped by over 69% in the last seven days, while the drop has been more than 99% in a month. Risk Harbor and Astroport (ASTRO) which hold second and third rank in the TVL on Terra, have plunged by over 93% and 99%.

In a month, Terraswap, Spectrum Protocol, White Whale (WHALE), and (SPEC) dipped around 98%, while Mars Protocol (MARS), Pylon Protocol (MINE), Aperture Finance, and Kujira (KUJI) plummetted by around 99%.

Anchor is a lending and borrowing protocol that provides crypto natives, fintech companies, and investors a stable high-interest rate, offering up to 19.5% yield on stablecoin deposits.

The moment Terra's US dollar-pegged stable coin terraUSD (UST) lost its peg of 1:1 against the American greenback amidst broader bearish markets, it was a bloody massacre in LUNA and its Defi protocol. This eventually led to a bloodbath in the crypto market with even the leader of the board Bitcoin facing the brunt to the point it clocked below the $25,000-mark in the first two weeks of May. Ether too has corrected and struggles to keep a pace of over the $2,000-level.

While what happened to LUNA? It went straight down the hole and reached zero levels. Many crypto exchanges delisted trading in LUNA following its dramatic flash-like crash. It's currently around $0.0001856.

On April 5, LUNA hit an all-time high of $119.18. Since then, LUNA has nosedived 100%. As per CoinMarketCap, LUNA's return on investment is down 99.99%. Simply put, LUNA investors saw their wealth squeezing to a mere fraction or even zero levels.

Meanwhile, Terra UST is currently trading near its all-time low of $0.05086 which was witnessed on May 21, 2022. It currently is around $0.05533. In the Indian rupee, UST is as cheap as 5 rupees.

As per Coinbase data, in the last seven days, UST slumped more than 58.5%. While in a month, it has dived by nearly 94%. In a year, UST has plunged by over 93%.

Unlike most blockchains, the ecosystem of Terra comprises a native algorithmic stablecoin, TerraUSD (UST). Being a scalable, yield-bearing coin, UST is value-pegged to the US Dollar.

Due to its mining mechanism which is decentralized network with its own decentralized currency, Terra met the requirement of DeFi protocols which are now commonly also referred to as TeFi.

Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the test
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout