A staggering 71% of all Cardano (ADA) addresses, or around 3.12 million, are underwater on their holdings in the smart contract platform’s native cryptocurrency. This signifies that the price at which they purchased the tokens is currently higher than the market price. Data from blockchain market analytics firm IntoTheBlock, on the other hand, shows that just about 26.4% of Cardano addresses, or 1.16 million addresses, are in the black, having acquired below current market values.
Despite the cryptocurrency’s rather flat price performance, Cardano’s network usage has been constantly increasing. According to DeFiLlama, the total value locked (TVL) in Cardano’s decentralized finance (DeFi) ecosystem has risen to over 446 million ADA, an all-time high. This huge growth in TVL reflects the growing popularity and trust in the Cardano ecosystem, as more protocols are deployed.
The advent of DeFi protocols on the platform has contributed to the expansion of Cardano’s TVL. These protocols allow users to engage in a variety of financial activities, including as lending, borrowing, and yield farming while maintaining ownership and custody of their cash. Cardano’s scalable and secure architecture has attracted a slew of DeFi initiatives, diversifying the platform’s ecosystem and increasing its TVL. Minswap presently has the top TVL position on Cardano, with a 36% dominance.
Cardano’s TVL increase can also be linked to people looking for alternatives to existing financial systems and centralized exchanges. Concerns about privacy, security, and control have pushed many users to seek out decentralized solutions, making Cardano a popular alternative.
Memecoins have also contributed to Cardano’s rise. SNEK, a memecoin incorporated into the Cardano ecosystem, recently had a price increase of more than 200%, mostly over the weekend, when trading volume was low.
In conclusion, while the vast majority of Cardano addresses are currently underwater on their holdings, Cardano’s TVL has set a new all-time high, reflecting the platform’s growing popularity and trust in its ecosystem. Cardano’s continued growth and popularity have been aided by the emergence of DeFi protocols and a preference for decentralized solutions, as well as the influence of memecoins.