Cardano DeFi Ecosystem Grows Despite Market Drop
Until Merge was completed, it was the largest PoS-based smart contract platform. So what’s the latest? Significantly affected by the market crash last year, ADA Coin is stuck at $0.4 with major updates behind. Current data gives an idea about its future.
One of the most important data to watch for smart contract platforms is the total locked value in the network. This data reflects investors’ interest in the platform. If TVL is rising steadily, things are going well. For example, what worried investors as much as the price loss on the Solana front was the massive meltdowns of TVL as of November. As a matter of fact, this meltdown pushed him to the bottom of the top 10.
On the Cardano front, the total value of assets locked in the decentralized finance ecosystem hit an all-time high of 417.7 million coins on May 14. Although TVL has dropped to 409.86 million coins today, this increase shows that the Cardano DeFi ecosystem is thriving. In terms of US dollars, TVL growth in the ecosystem continues steadily compared to $50 million at the beginning of 2023. TLV, which exceeds 150 million dollars, is still below the 300 million ATH level. However, the ADA Coin-based increase indicates that new ATHs may come in the future.
The value of a smart contract platform is measured by the interest in the protocols that operate on it. The dominant DeFi protocol in Cardano is Minswap, which accounts for $55.7 million of total TVL. It is followed by the decentralized synthetic asset protocol Indigo with $29.67 million. Over the past week, the number of assets locked in these two protocols has increased by 10.55% and 8.35%, respectively. WingRiders DEX is third with a TVL of $15.61 million and Djed is fourth.
Growth in the DeFi space is one of the most important things Cardano needs, and the fact that the above protocols continue to expand as the price drops is a very positive development. Analysts have suggested that Ethereum’s recent network congestion and high gas fees could push more users towards cheaper alternatives like Cardano. In the wake of the meme coin craze, gas fees on Ethereum hit a 10-month high as more investors are eager to make a profit. Cardano is a good alternative and current data paints an optimistic picture of its future and potential in the long run.
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