Cardano (ADA), a competitor to Ethereum (ETH), is getting off to a blazing fast start in 2023, and decentralised finance (DeFi) activity is skyrocketing on the platform.
According to the DeFi tracker DeFi Llama, Cardano currently has a total value locked (TVL) of $65.97 million at the time of this writing. This represents around a 36% increase from the TVL that was reported for Cardano on January 1st, which was $48.5 million.
The entire value of an asset represented by smart contracts on a blockchain is denoted by the TVL of that blockchain. The total value of the locked-in collateral (TVL) is determined by multiplying the total amount of collateral by the most recent market price of the assets.
The most important decentralised application (DApp) for Cardano is Minswap, which is a decentralised multi-pool exchange (DEX). More than 41% of the total value locked (TVL) on the Cardano blockchain is represented by Minswap, which has a total value locked of $27.26 million.
Indigo is a decentralised trading platform for synthetics that has 11.35 million TVL and is the second most prominent decentralised application (DApp) on Cardano. In third place is WingRiders, an automated market maker (AMM) DEX that has a total value of trading volume of $10.87 million. Over the course of the last month, the TVL for both Indigo and WingRiders has increased by approximately 25%.
Cardano’s TVL increase is a close reflection of the cryptocurrency’s price increase: ADA is trading around $0.322 at the time of this writing, representing an increase of more than 31% since the 31st of December. The eighth-ranked cryptocurrency asset by market size is still roughly 90% behind its all-time high price of $3.09, which it reached in September 2021. This price was reached in September 2021.