Cardano’s DeFi ecosystem is reaching new heights, with its total value locked (TVL) near an all-time high of $700 million.
Data from DeFillama shows that the blockchain network is riding the current bullish market sentiment by adding over $400 million to reach $680 million at press time. The figure marks a massive turnaround for the blockchain network, which saw its TVL fall to around $50 million in November 2022 following the shock collapse of FTX.
TVL is often considered a barometer of the health and trust of a DeFi ecosystem. This metric reflects the growing appeal of a blockchain network in the crypto space, with an increase signaling an increase in investor confidence in the platform.
In addition to its TVL growth, Cardano decentralized exchanges (DEXs) reported $22.35 million in trading volume over the past day, the highest since December 2023. According to DeFillama data, weekly DEX trading volume also reached $117.32 million, the best performance since May 2023..
Speaking on these numbers, Cardano founder Charles Hoskinson said they represent the dawn of DeFi activity on the blockchain network while highlighting the ecosystem’s progress and growing adoption.
ADA price hike
The enhanced DeFi activities come as Cardano’s ADA token has become one of the top performers during the current market uptrend.
Over the past week, the crypto asset has gained over 20%, reaching a high of $1.21. According to CryptoSlate data, this is ADA’s highest price level since 2022.
This momentum has propelled Cardano’s market capitalization to over $40 billion, making it the ninth largest digital asset in the world. The rally aligns with broader bullish market conditions and several ecosystem advances.
Market observers have noted that recent developments – including the implementation of Zero-Knowledge (ZK) technology and the transition to decentralized governance – have improved Cardano’s prospects.
According to them, these innovations provided a solid foundation for sustained growth and solidified the network’s position as a critical player in the crypto space.
