Terra (LUNA) price lost 31% over the past four weeks, erasing all of the gains accrued year-to-date and even though the token continues to outperform the broader cryptocurrency market by 20%, Terra is struggling to hold above the $85 support.

Previously, a few bullish catalysts were Terra’s USD (UST) stablecoin flipping Binance USD (BUSD) to become the third-largest stablecoin on April 18 and the April 26 announcement that Fireblocks, a digital asset custody platform had seen institutional clients invest over $250 million into the Terra decentralized finance (DeFi) ecosystem.

This positive newsflow was not enough to instill confidence in Terra investors and there were also a few changes that might have partially subdued the continuous inflow of deposits on the network.

For instance, on May 1, Anchor Protocol, Terra’s largest DeFi application by deposits, introduced a semi-dynamic adjustment to its previously fixed 20% annualized percentage yield (APY). The Anchor earn rate was cut to 18% and going forward it will be reviewed monthly.

Terra's main decentralized application metric increased by 41% over the past month as the network's total value locked (TVL) hit an all-time high at 254 million LUNA.

Notice how Terra's DApp deposits saw a 77% jump in 2022, reaching the equivalent of $21.2 billion. As a comparison, Binance Chain's TVL currently stands at $9.8 billion, a 9% increase in BNB terms year-to-date. Avalanche, another DApp scaling solution competitor, saw a 28% TVL increase in AVAX terms to a $7.9 billion value.

To confirm whether DApp use has effectively increased, investors should also analyze the transaction count within the ecosystem.

Anchor holds a $16.6 billion TVL, equivalent to 78% of Terra’s decentralized