The total value locked (TVL) on the Cardano blockchain has hit a significant milestone after crossing 500 million ADA. This would come just a month and a few days after TapTools predicted an exponential increase in the network’s TVL.
In this prediction, TapTools, a Cardano portfolio tracker, also reported different factors that could be pivotal to Cardano’s explosive growth in the coming months.
Cardano DeFi Ecosystem Hits 500 Million ADA In TVL
Data from DeFi TVL aggregator DefiLlama reveals that the total value locked on the Cardano network now stands at 505.114 million ADA. This is equivalent to $186.18 million when converted to U.S. dollars.
This new milestone represents a staggering 91.9% increase in total value locked since the turn of the year. Meanwhile, in the last month, Cardano’s TVL has jumped by nearly 8%, indicating a steady adoption of its DeFi ecosystem.
On-chain data shows that Minswap is, by a distance, the leading protocol on the network, with a TVL of $55.56 million. In fact, the decentralized exchange boasts a market share dominance of 29.84%.
Minswap protocol is followed by Indigo, a collateralized debt protocol, with a total value of $28.5 million locked on it. WingRiders, Liqwid, and Djed Stablecoin are three other notable protocols on the Cardano DeFi ecosystem, with TVLs of $17.51 million, $15.42 million, and $13.71 million, respectively.
It is important to note that total value locked is a metric that estimates the amount of cryptocurrency locked in DeFi protocols on a particular blockchain. It is calculated by summing up the value of all the crypto assets locked in various DeFi protocols on a blockchain. TVL can be represented in the native token of a blockchain (as in ADA for Cardano) or in USD.
ADA Price Shows No Significant Action
A skyrocketing total value locked is often an indicator of increased activity in a DeFi ecosystem. However, Cardano’s impressive TVL growth hasn’t particularly impacted the price of ADA, the blockchain’s native token.
As of this writing, one ADA token trades at $0.3655, losing 1% of its value in the last 24 hours. The price of ADA has been moving sideways recently, dipping by only 0.5% in the last seven days.
ADAUSD trading at $$0.3652 | Source: ADAUSD chart from TradingView
That said, a broader look at the market reveals that ADA has been on a steady decline, losing more than 13% of its value in the past month. The cryptocurrency boasts a daily trading volume of approximately $129.3 million.
According to data from CoinGecko, ADA ranks as the seventh-largest cryptocurrency, with a total market cap of $12.79 billion.
-Featured image from Solodev, chart from TradingView