Cardano DeFi TVL Rises More Than 100% In One Month

Share This Post

DeFi protocols in Cardano, a proof-of-stake smart contracting platform, have locked over $100 million in user assets as of February 7. 

According to DeFiLlama statistics, Cardano DeFi protocols command a total value locked (TVL) of slightly over $103 million, which is more than 2X the amount on January 1. Early this year, Cardano TVL stood at $48.95 million.

The upswing of TVL could be because of several factors. However, top of the list is the broader recovery in the crypto markets. The rising tide of Bitcoin, which rose from below $15,000 to over $24,000 in early February, supported ADA’s rise, Cardano’s native currency. 

Cardano Price On February 7

Cardano’s DeFi TVL is expanding faster than the overall market. To illustrate, from January 1 to February 7, the total DeFi TVL across all chains rose from around $38 billion to $48 billion, an increment of approximately 20%. During this time, Cardano DeFi TVL rose by over 100%.

ADA Prices Are Recovering, Developers Are Building

The fact is there could be several factors behind the revival of DeFi activities in Cardano. After a biting crypto winter which saw ADA drop by more than 70% from 2021 highs, markets appear to be recovering. This may be boosting users’ confidence to engage in DeFi, including in protocols launched on Cardano.

The proof-of-stake smart contracting platform has also been implementing changes and adding features to enhance scalability. 

Under Basho, the goal of Cardano developers is to boost performance and scalability. Cardano is based on Bitcoin’s code but with smart contracting capability, which was activated via Alonzo, marking the end of Goguen. 

Cardano uses an unspent transaction output (UTXO) model, diverging from account-based systems like Ethereum, where the validator can prioritize transactions by tagging higher fees. Therefore, users in Cardano know beforehand the fees they pay. All transactions are queued via an off-chain sequencer and confirmed on-chain.

The Launch of Djed, An Overcollateralized Stablecoin 

MinSwap, a decentralized exchange, dominates with a 32% market share, managing $34.07 million in user assets. Djed, an overcollateralized stablecoin developed by Input-Output Global (IOG) and COTI, has a TVL of $11 million. 

The stablecoin was launched in early February 2023 after a year in development, and the developer said it is overcollateralized by between 400% and 800% by ADA.

IOG said the stablecoin would offer an alternative to volatile crypto assets currently being used in the smart contracting platform. MinSwap, MuesliSwap, and WingRiders are some of the DeFi protocols that have supported Djed. However, Djed could be integrated into over 40 projects in the Ethereum competitor in the coming months.

As of the time of writing on February 7, ADA is changing hands at $0.38, down 3% in the past trading week but up roughly 68% from December lows.

Read Entire Article
spot_img

Related Posts

Bitcoin Bull Flag Could Predict 10% Surge To $77,000, Analyst Explains

An analyst has explained that a breakout from a bull flag pattern could lead Bitcoin to surging towards a new all-time high of $77,000 Bitcoin Has Been Forming A Bull Flag Pattern Recently In a new

LendFi Revolutionizes DeFi Landscape With Comprehensive App Launch

PRESS RELEASE In an exhilarating development for the decentralized finance (DeFi) community, LendFi announces the launch of its innovative app, now available for download on both the iOS Store and

Bitwise CIO expects institutions to inject over $1 trillion into Bitcoin via ETFs

Bitwise CIO Matt Hougan said institutions will inject more than $1 trillion into Bitcoin via ETFs over the coming year as due diligence is completed and further exposure is approved Hougan shared his

Bitwise files spot Ethereum ETF application

Bitwise has filed its application for a spot Ethereum ETF with the SEC on March 28 The company submitted an S-1 form for a fund titled the Bitwise Ethereum ETF Like other similar applications, the

Hedge Fund Goes Long Bitcoin, Short MicroStrategy: Details

Kerrisdale Capital, a hedge fund, today disclosed a nuanced investment thesis: going long on Bitcoin while concurrently taking a short position on MicroStrategy shares This move is predicated on the

US Senate Candidate Calls for Resignation of SEC Chair Gary Gensler

US Senate candidate John Deaton has called for the resignation of US Securities and Exchange Commission (SEC) Chairman Gary Gensler “Under Gensler, the SEC has forgotten, or intentionally
- Advertisement -spot_img