A new record high of 336.8 million ADA tokens, or more than $110 million at the time of writing, has recently been reached for the total value locked in the Cardano decentralized finance (DeFi) ecosystem. This year, the total value locked on Cardano increased.
Now, Minswap is the largest decentralized finance protocol on the Cardano network, with a total value locked of over $40 million, or more than 36% of the total. WingRiders, Indigo, and the Djed stablecoin, which went online at the end of January, all adhere to the protocol.
Data from DefiLlama indicates that the total value locked on the Cardano network began 2023 at about $49 million and has since risen to reach very nearly $110 million. Cardano’s price increase, from around $0.25 at the start of the year to roughly $0.32 at the time of writing, can be partially blamed for the increase.
Incidentally, Cardano’s total locked value has increased dramatically as well, moving from 198.6 million to 334.8 million at the time of writing when expressed in $ADA. Cardano is an attractive alternative for developers looking for a scalable and secure platform because it is a smart contract hub with high throughput. Competitors of the protocol include Solana ($SOL) and Avalanche ($AVAX), which are in turn rivals of the dominant smart contract network Ethereum ($ETH).
Cardano behind BNB Chain (BNB), which has a TVL worth $4.74 billion, in terms of total value locked. The protocol to compete with is Ethereum, but before that, Cardano needs to surpass other Ethereum competitors and step up its attempts to expand its DeFi economy broadly. According to data cited by CryptoGlobe, 80% of Cardano investors are losing money on their investments, 4% are at-the-money or breaking even, and 16% are in-the-money or holding unrealized gains.
Supporters of Cardano point out that the project has a strong development team and a clear future plan, which might position it as a serious competitor in the cryptocurrency market in the long run. In March, when cryptocurrency acceptance is continuing to rise, the cryptocurrency world anticipates that Cardano will enjoy an upward movement.
The average response from more than 1000 people on CoinMarketCap’s cryptocurrency price projections was that ADA would conclude March trading at $0.3971 per token, up from the cryptocurrency’s current price of $0.3377, or over 17% higher.
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