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Cardano Capitalizes on Ethereum Dip, TVL Soars Above $440 Million

Last Updated December 14, 2023 2:07 PM
Teuta Franjkovic
Last Updated December 14, 2023 2:07 PM

Key Takeaways

  • Cardano’s TVL exploded past $440 million, fueled by investor migration towards Solana & Avalanche rivals.
  • Indigo and Minswap TVL surged 50%, nearing $100 milliom each.
  • Investors flock to yield opportunities in Cardano’s DJED stablecoin.
  • LendFi & Spectrum Finance TVL up 90%, ADA price jumps 80% in a month, futures bets surge.

Recently, Cardano’s ecosystem experienced a significant growth in its total value locked (TVL), surpassing $440 million. This was influenced by a surge in interest in Ethereum alternatives like Solana and Avalanche.

This shift in investor focus has driven capital towards different blockchains .

50% Boom in a Week! Cardano DeFi Roars Back

Notably, Cardano’s TVL, which had peaked at $330 million in April, saw substantial growth in the past week. Key contributors to this increase include the lending protocol Indigo and the on-chain exchange Minswap, both of which saw their TVLs jump by over 50%, nearing $100 million each.

The Djed DJED stablecoin, which is tied to the US Dollar, experienced a supply surge of more than 45% in the last week, signaling a notable inflow of capital as investors aim to take advantage of yields.

The total value locked in smaller protocols such as LendFi and Spectrum Finance has seen an increase of 90%, indicating a trend where users are beginning to engage in riskier investments.

Stablecoins chart
Credit: DefiLlama

The recent on-chain growth in Cardano’s ecosystem has positively impacted its native token, ADA. This has led to a significant price increase. ADA’s value jumped by about 13%  in the last 24 hours at the time of writing (December 14 2023), contributing to more than 80% rise over the month. This upturn is also reflected in a 100% increase in leveraged futures bets on ADA’s price volatility during the same timeframe. As a result, Cardano’s decentralized finance (DeFi) ecosystem has experienced a surge, mirroring trends seen in other networks.

Altcoin Craze Boosts Cardano Amid Bitcoin Boom

In a significant milestone for DeFi, the total capital locked or staked across all DeFi protocols hit $50 billion for the first time in six months in December. Protocols within the Solana ecosystem  were the main drivers of this surge, reflecting a renewed optimism around the blockchain in recent weeks.

ADA’s recent performance is largely down to a positive trend across the broader crypto market.

Crypto analytics platform Santiment observed  a decrease in ADA addresses. This is often seen as a bullish sign indicating smaller investors selling to larger holders. However, Santiment cautions investors, pointing out Cardano’s significant social media presence this year, which can impact market perceptions and movements.

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