The Cardano blockchain network’s decentralized finance (DeFi) ecosystem is nearing a significant milestone, with the total value of assets locked (TVL) approaching a 21-month high of $300 million. This surge is largely attributed to the bullish trend of Cardano’s native ADA token.
According to data from DeFillama, the TVL of Cardano currently stands at $298 million. This represents a remarkable 508% increase in the year-to-date (YTD) metric, especially considering that the network’s TVL was less than $50 million at the beginning of the year.
The Total Value Locked (TVL) is a metric that quantifies the amount of digital assets committed to a specific DeFi protocol or ecosystem. It serves as an indicator of the ecosystem’s vitality and the level of trust it commands. An increasing TVL is indicative of investors’ growing confidence and their readiness to engage with the protocol or ecosystem.
ADA Price Surges Alongside DeFi Activity on Cardano
According to DeFillama, there’s a noticeable uptick in DeFi activity on Cardano, likely driven by the current positive market sentiment. The data aggregator’s dashboard reveals that the trading volume of decentralized exchanges on Cardano has exceeded $10 million in the past 24 hours.
Furthermore, this metric has seen a significant weekly growth of 103%, reaching $41.31 million at the time of reporting. This signifies a substantial recovery for a network that saw its decentralized exchanges (DEXs) handle less than $50 million in transactions in September.
Cardano’s native cryptocurrency, ADA, has been one of the standout performers in the current upbeat climate of the digital asset market. As per CoinmarketCap data, ADA’s value has seen a surge of over 15% in the past week, climbing from $0.37 to a peak of $0.45. However, at the time of reporting, the price has slightly corrected and currently stands at $0.43. This price fluctuation has resulted in an approximate increase of $2 billion in its market capitalization, which is currently valued at $15.38 billion.