Terra’s ecosystem has showed strong relative performance in Q1 2022. The establishment of the LFG and its subsequent BTC buys kicked off a wave of adoption for Terra.
From a TVL basis, Terra is now the second-largest ecosystem fueled by the core debt protocol, Anchor. Anchor accounts for over half of the ecosystem’s capital and maintains these high deposits via a currently unsustainable mechanism.
For Terra to maintain UST growth, other protocols have to come online to create UST demand. Understanding the potential UST demand is key in determining whether or not Terra can sustain its outperformance.
