Capital flight in Anchor and other Terra DeFi reaches USD 25,000 million

Capital flight in Anchor and other Terra DeFi reaches USD 25,000 million

The Terra network ecosystem is currently experiencing a crisis that is not only reflected in the collapse of the value of its terra (LUNA) and terra USD (UST) cryptocurrencies, but also in its decentralized finance protocols (DeFi). These platforms, with Anchor at the head, had a capital flight that exceeded USD 24,900 million.

According to data provided by the statistics site , Terra is currently the sixth network with the most funds blocked in its entirety (TVL). At the time of writing this article, that index was at USD 3.750 million, 87% below the TVL that the Terra protocols added seven days before. With respect to the last 24 hours, the drop is 71%.

To put numbers to these percentages, Terra’s DeFi had $28.67 billion in TVL for the first week of May. However, the figure was decreasing until reaching USD 12.9 billion on May 10, with the fall of the SUN and MOON already consummated, as reported by Criptonews.

Terra is no longer the second network with the highest TVL, a position it had occupied for almost all of 2022. Source: .

According to , Terra has 29 decentralized finance protocols running on its network. Among these, Anchor Protocol is the most recognized.

The fall of LUNA and UST seems to “take on” other cryptoassets as well, such as the avalanche cryptocurrency (AVAX), from the network that bears the same name. It happens that the Luna Foundation (LFG, the organization behind UST and LUNA) owns 3.5% of its reserves in AVAX, which is equivalent to more than USD 69 million at the close of this note. As it is feared that the LFG may liquidate these funds to get around the crisis it is going through, the value of AVAX has fallen by 27% in the last 24 hours and is trading at USD 34.8, according to data from CoinMarketCap.

The crisis of Terra and its cryptoassets has even impacted other cryptocurrencies. Source: CoinMarketCap.

Terra loses a privileged place in the DeFi

In January 2022, this newspaper reported on the growth of networks such as Terra, Fantom and BNB Chain (ex Binance Smart Chain) in the world of DeFi. By the end of 2021, Terra was gaining more and more space and it already exceeded USD 16,000 million in TVL.


After the first four months of this year, this was ranked as the second most valuable network among decentralized finance, with 14% of the spectrum under its domain. However, everything collapsed in a couple of days. From May 8 to 11, Terra went from a 13.2% dominance in DeFi to just 2.69%.

Ethereum gained a good part of the dominance that Terra lost among defis. Source: .

The funds blocked on Terra seem to have largely migrated to Ethereum. The fact is that the leading network in the DeFi field went from a dominance of 55% to 64% in a few hours. Other networks that surpassed Terra, after its collapse, were BNB Chain, Avalanche (even with the depreciation of its cryptocurrency mentioned above), Solana, Tron, Polygon and Fantom.