$300M! The total value blocked on the Cardano ADA network explodes!
Over the past 24 hours, the TVL of the Cardano (ADA) blockchain has increased by 11%. The TVL represents the total value locked in the ecosystem. On a decentralized protocol, everything is taken into account whether it is staking or a simple deposit.
On Twitter Charles Hoskinson, the founder of Cardano announced in response to a tweet that this was just the beginning. Following an incredible increase, its TVL went from $3.2M on January 20, 2022 to $306M today.
- What about the Cardano ecosystem?
- Why has the Cardano blockchain undergone this big boom?
- What future for DeFi ADA?
What About The Cardano Ecosystem?
The native ADA token leads the Cardano ecosystem , placed in 8th position in terms of market capitalization. It is considered a strong competitor to the Ethereum blockchain. The DeFi of this blockchain experienced a great revival in September 2021 by implementing smart contracts. These are the sinews of war between the different DeFi protocols because they allow many actions to be automated. Smart contracts will allow Cardano’s DeFi ecosystem to grow and operate at a much faster rate than before.
At first glance Cardano has still fallen considerably behind compared to its competitors. Despite the announcement of upcoming projects on the blockchain, ADA is at $0.97, or -68% from its high which was $3.09. In the short term we could see a bullish curve according to the MA50 indicator, since $0.95 has been crossed.
The developers of the ADA ecosystem have announced many improvements to come, especially related to the hardfork. We could therefore expect a real explosion in terms of market capitalization following this fork. The value of ADA could well follow this potential increase.
Why Has The Cardano Blockchain Undergone This Big Boom?
The cardano blockchain recorded a boom of 11%, this is mainly due to the decentralization and the high speed of the network. Indeed, the ecosystem already has many DEXs (decentralized trading platforms). As well as alternatives for Compound, Anchor, AAVE…
For many network users, it’s a solid project that’s far too underrated. Things are accelerating, the TVL Cardano has recently exceeded that of the Kusama ecosystem.
$191M locked in the decentralized Minswap protocol, or 62% of Cardano ‘s TVL. As for SundaeSwap, it ranks 2nd with $113M.
If we trust the latest statement from IOG Global (the Cardano developers ), the blockchain is constantly evolving with 517 projects being created on ADA. Among these innovations, a third is dedicated to NFT collections. Then there are also projects for new wallets, crypto loans, gaming (play to earn games I imagine) and many more.
It should be noted that the TVL value of Cardano has therefore been of great help to it by approaching the $300M mark. This strongly favored the revival of hype for the project.
What Future For DeFi ADA?
DeFi ADA promises great things if founder Charles Hoskinson’s recent tweet is any indication. A craze has been created on the networks of some Cardano maximalists, following the sudden increase in TVL. Hoskinson said it was just the beginning. To clarify that many decentralized applications are pending the Vasil Hardfork.
On February 28 IOG, developers of the Cardano blockchain released details regarding this hardfork.
“ Our February release is just the beginning. Throughout 2022, and specifically during the June and October hardfork combinator (HFC) events, we will be introducing a series of scaling improvements. These include key elements of our scaling plan like pipelining , new Plutus CIPs, UTXO disk storage, and Hydra. Combined with parameter adjustments, these features will improve Cardano’s throughput and optimize the system. So that it can accommodate a growing range of decentralized financial (DeFi) applications, smart contracts, and DEXs. »
In addition to the technical terms, it should be remembered that the improvements on the Cardano DeFi network promise a great evolution. Both in terms of the speed of the ecosystem, which remains one of the most important points in cryptocurrency, and in terms of smart contracts and decentralized applications as we know them in the world of DeFi.
A multitude of new features and new products could see the light of day. Cardano developers have talked about a decentralized finance app store. A light wallet is a system that allows for simplified verification of transactions, requiring only a few computer resources.
Following all these encouraging announcements, it is certain that the DeFi of the Cardano blockchain has a bright future ahead of it.