Nansen Adds Terra for On-Chain Analytics as Home of LUNA Grows as DeFi Hub

It becomes the sixth blockchain to be supported by the popular data platform.

AccessTimeIconMar 17, 2022 at 2:00 p.m. UTC
Updated May 11, 2023 at 4:47 p.m. UTC
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As Terra’s influence in decentralized finance (DeFi) grows, traders are now equipped with new tools to track it.

Popular wallet profiler and analytics platform Nansen announced on Thursday that it has expanded its coverage to Terra, now the sixth blockchain the service analyzes.

The coverage comes at a time when Terra is emerging as a DeFi powerhouse and its native token, LUNA, is bucking wider market trends.

Terra is currently the second-largest chain in terms of total value locked (TVL) at $25.6 billion, comfortably outstripping Binance Smart Chain’s $11.9 billion. Likewise, LUNA is up 65% on the month, while ETH has fallen by 5%.

Part of the popularity of the chain is attributable to its high performance. Per a press release provided to CoinDesk, “research from Nansen shows that the total number of transactions on Terra hover around 50% of Ethereum’s total transactions while gas fees paid are between 0.2%–0.6% of that paid on Ethereum.”

However, detractors say that much of the volume that Terra has attracted is due to Anchor, a stablecoin minting protocol that yields over 19% to depositors.

The protocol is often referred to as pyramidal or “ponzinomic” in nature, and high-profile Twitter personalities have been engaging in bets about the price of LUNA in part as a proxy for Anchor’s success.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Andrew Thurman

Andrew Thurman was a tech reporter at CoinDesk with a focus on DeFi.


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