The total value locked (TVL) on the Cardano blockchain has reached a major milestone after crossing 500 million ADA. This would come just a month and a few days after TapTools predicted an exponential increase in the network’s TVL.
In this forecast, TapTools, a Cardano portfolio tracker, also reported several factors that could be critical to Cardano’s explosive growth in the coming months.
Cardano DeFi ecosystem reaches 500 million ADA in TVL
Data from the DeFi TVL Aggregator Defillama reveals that the total value locked on the Cardano network is now 505.114 million ADA. This equates to $186.18 million when converted to US dollars.
Source: DefiLlama
This new milestone represents a staggering 91.9% increase in total locked value since the turn of the year. Meanwhile, Cardano’s TVL is up nearly 8% over the past month, indicating steady adoption of its DeFi ecosystem.
On-chain data shows that Minswap is the leading remote protocol on the network, with a TVL of $55.56 million. In fact, the decentralized exchange has a market share dominance of 29.84%.
The Minswap protocol is followed by Indigo, a collateralized debt protocol, with a total value of $28.5 million on it. WingRiders, Liqwid and Djed Stablecoin are three others notable protocols on 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 locked value is a measure that estimates the amount of cryptocurrency locked in DeFi protocols on a given blockchain. It is calculated by adding up the value of all crypto assets locked in various DeFi protocols on a blockchain. TVL can be represented in a blockchain’s native token (as in ADA for Cardano) or in USD.
ADA price shows no significant action
A sky-high total locked value is often an indicator of increased activity in a DeFi ecosystem. However, Cardano’s impressive TVL growth hasn’t really impacted the price of ADA, the blockchain’s native token.
At the time of writing, one ADA token is trading at $0.3655 and has lost 1% of its value in the past 24 hours. The price of ADA has been moving sideways lately, dropping just 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 shows that ADA is in steady decline, losing more than 13% of its value in the past month. The cryptocurrency has a daily trading volume of approximately $129.3 million.
According to data from CoinGeckoADA is the seventh largest cryptocurrency, with a total market cap of $12.79 billion.
-Featured image of Solodev, chart from TradingView