Cardano's DeFi ecosystem is entering a phase of exponential growth, as the total value locked (TVL) approaches its historical high of $700 million.
According to data from DeFillama, this blockchain network has capitalized on the positive growth momentum of the market, adding over $400 million to reach a total of $708 million at the present time. This is a significant leap, especially compared to the tough period in November 2022 when the TVL dropped to its lowest level, around $50 million, following the collapse of the FTX exchange.
Source: DeFillama
TVL has long been regarded as an important metric, reflecting the health and level of investor confidence in the DeFi ecosystem. The strong growth of TVL on Cardano not only demonstrates the increasing appeal of this blockchain network in the cryptocurrency field but also showcases the growing trust from the investor community.
Outstanding performance of decentralized exchanges
In line with the growth of the TVL, decentralized exchanges (DEX) on Cardano also recorded a trading volume of $25.95 million in the past 24 hours – the highest since December 2023. Additionally, data from DeFillama shows that the weekly DEX trading volume reached $117.32 million, an impressive achievement since May 2023.
The founder of Cardano, Mr. Charles Hoskinson, shared that these impressive figures mark the beginning of a strong wave of DeFi activity on Cardano's blockchain platform. He also emphasized that this is evidence of significant progress and the increasing application of the ecosystem.
ADA price surges
The development of DeFi activities coincides with the spectacular price rise of ADA – the native token of Cardano. In the past week, ADA's price has increased by more than 20%, reaching a peak of nearly $1.25, the highest level since 2022.
ADA price chart | Source: Tradingview
This momentum has pushed Cardano's total market capitalization past the $40 billion threshold, placing ADA in the top 8 by market cap. This growth aligns with the context of the crypto market experiencing a strong uptrend, driven by significant technological improvements in the ecosystem.
Analysts believe that recent advancements, including the deployment of Zero-Knowledge (ZK) technology and a move towards decentralized governance, have strengthened Cardano's future outlook, opening up long-term growth potential for this network.