Terra’s ecosystem had about 15% of the DeFi market before it collapsed last month. This makes it the second-largest hub for all decentralized finance, according to DeFiLlama. But where will investors flee after a $40 billion network goes bust? On May 6th, when Terra was alive and active, Ethereum accounted for 55% of all DeFi activity, BNB Chain 6%, Avalanche 4%, Solana 3%, Fantom 2%, Tron holds 2%.
The figures now appear to be quite different. Ethereum with a current market share of 61%, BNB with a current market share of 7.6% and Tron with a current market share of around 6% are the biggest winners. Harmony is a little-known company that currently holds a 5.2% market share.
Surprisingly, Fantom and Avalanche actually lost some market share during this period, while Solana held steady at 3%. Projects such as Arrakis Finance (a liquidity management protocol), Iron Bank (a protocol-to-protocol lending platform), and Euler (another lending platform) on Ethereum help absorb new funds into DeFi.
Projects such as pNetwork (a network of validators), Wombat Exchange (a decentralized exchange similar to Curve), and TokensFarm (a revenue aggregator) have all performed well on the BNB chain in the last month.
TRON is a winner
Although Tron’s market share has nearly doubled since Terra’s collapse, it has done so with essentially the same product as Terra’s UST: USDD.
USDD is a new algorithmic stablecoin that works similarly to the minting and burning process of Terra’s UST. The Tron DAO is currently buying Bitcoin, Tron and USDT as collateral. As a result, it’s a strange mashup of many approaches.
While stablecoins are a DeFi livelihood, consumers seem to be flocking to USDD for its high returns rather than its merits as a decentralized currency. For example, Tron promises some pretty extravagant double-digit payouts on several different platforms on the USDD website.