The Cardano network’s total value locked (TVL) began at about $49 million in 2023 and has since risen to more than $107 million. While the surge may be attributed in part to Cardano’s recent price hike, there has also been a sharp increase in activity across multiple ADA-native DeFi protocols.
The price of the ADA cryptocurrency has risen from approximately $0.25 at the start of the year to around $0.40 at the time of this writing. The past month’s financial performance measures for the layer-1 proof-of-stake blockchain network were generally positive.
Moreover, the creation of Djed stablecoin has prompted increasing demands for ADA coins, which are one of the main reserve tokens for the new algorithmic stablecoin.
CARDANO’S (ADA) TVL rose to new highs
The number of ADA locked in Cardano DeFi apps rose from 200 million to around 270 million within a week of the stablecoin’s introduction in January. At press time, the Djed protocol has garnered over 30 million ADA to issue around 12 million DJED stablecoins, with a reserve ratio of 601%.
Meanwhile, it has led to an increased usage of Cardano itself, with the layer-one network’s total value locked (TVL) increasing by more than 100% since the beginning of January.
It’s conceivable that Djed’s beneficial influence on Cardano adoption is just getting started. Since Terra’s demise in May, the cryptocurrency industry has certainly been looking for a dependable stablecoin, and it appears that Djed fulfills that need.
For example, Djed will have an over-collateralization ratio somewhere between 400% and 800% and be backed by a reserve of several cryptocurrencies. A structure like this is intended to protect Djed from sharp drops in the value of the currencies that support it, avoiding the problems that plagued the Terra Luna ecosystem.
However, the 24-hour trading volume for the Cardano (ADA) currency increased by 26.48% to around $393,766,006. ADA is the eighth-largest cryptocurrency by market cap, with a market worth of $13 billion.
ADA will likely continue to grow, and there’s a strong likelihood that might hit $1 by the middle of the year, as analysts predict. Nevertheless, the Cardano network is expanding as more users and developers join it. There is likewise an increased demand for ADA as major sharks and whales continue to accumulate it.