The total value locked (TVL) on the Cardano blockchain has hit a significant milestone after crossing 500 million ADA. This comes just a month and a few days after TapTools predicted an exponential increase in TVL on the network.
In this forecast, TapTools, a Cardano portfolio tracker, also reported various factors that could lead to Cardano’s strong growth in the coming months.
Cardano DeFi Ecosystem Reaches 500 Million ADA In TVL
Data from DeFi TVL aggregator DefiLlama reveals that the total amount locked in the Cardano network currently stands at 505.114 million ADA. This is equivalent to $186.18 million when converted to US dollars.
This new milestone represents a staggering 91.9% increase in the total amount locked up since the start of the year. Meanwhile, in the last month, Cardano’s TVL jumped by almost 8%, indicating a steady adoption of its DeFi ecosystem.
On-chain data shows that Minswap is, by far, 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%.
The Minswap protocol was followed by Indigo, a collateralized debt protocol, with a total value of $28.5 million locked in it. WingRiders, Liqwid, and Djed Stablecoin are three others prominent protocols in the Cardano DeFi ecosystem, with TVLs of $17.51 million, $15.42 million, and $13.71 million, respectively.
It is important to note that the total amount locked is a metric that estimates the amount of cryptocurrency locked in DeFi protocols on a particular blockchain. It is calculated by summing the value of all crypto assets locked in different DeFi protocols on a blockchain. TVL can be represented in a blockchain’s native token (such as ADA for Cardano) or in USD.
ADA Price Shows No Significant Action
An increasing total amount locked is always a sign of increased activity in a DeFi ecosystem. However, Cardano’s impressive TVL growth has not significantly affected the price of ADA, the blockchain’s native token.
As of this writing, one ADA token is trading at $0.3655, having lost 1% of its value in the last 24 hours. The price of ADA has recently moved sideways, falling only 0.5% in the past seven days.
ADAUSD trading at $$0.3652 | Source: ADAUSD chart from TradingView
That said, a broader look at the market reveals that ADA continues to 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