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HomeNewsCardano Takes Flight in DeFi Market as Investors Unleash the Untapped Power...

Cardano Takes Flight in DeFi Market as Investors Unleash the Untapped Power of the ADA Ecosystem

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    • Cardano (ADA) has climbed the DeFi TVL rankings and currently sits in the 16th spot with a TVL of $1,83.16 million.
    • The growth of Cardano in DeFi comes despite the absence of major dApps and a decline in ADA’s price.

Cardano Rises in DeFi TVL Rankings

Cardano (ADA) has been making significant progress in the rankings of Total Value Locked (TVL) in the decentralized finance (DeFi) space. According to DefiLlama, Cardano currently holds the 16th spot among all DeFi chains with a TVL of $1,83.16 million, including the staking option.

Cardano’s position surpasses chains like Bitcoin and EOS, while it trails behind Klaytn, Ultron, Fantom, and other chains in the DeFi rankings. Ethereum remains the leading DeFi chain with a TVL of $30.92 billion, followed by Tron with $5.46 billion in total value locked.

Cardano’s Rise in DeFi Rankings Attracts Attention

The rise of Cardano in the DeFi rankings has garnered attention, with the ADA Whale Twitter account highlighting this achievement. ADA Whale shared a screenshot showing Cardano in 16th place and expressed excitement about the potential for further growth. According to ADA Whale’s estimation, Cardano is only $10 million away from the top 15 and needs less than twice its current TVL to enter the top 10.

Notably, this growth has occurred even though major dApps have yet to launch, and the TVL is primarily denominated in ADA, which has experienced an 88% decline from its all-time high.

Steady Growth in Cardano’s DeFi TVL

Cardano has been experiencing steady growth in its DeFi Total Value Locked since the beginning of 2023. On May 14, the total value locked in ADA reached a new high of 504 million ADA. This growth can be attributed to developments such as the Vasil upgrade, which enhances Cardano’s smart contract capabilities. Following the Vasil upgrade, several new dApps have been launched, contributing to the overall TVL.

The Impact of Djed Stablecoin Protocol

One notable dApp on Cardano is the Djed stablecoin protocol, which was deployed on the mainnet in late January. Djed has quickly become the fifth largest dApp in terms of DeFi TVL on Cardano, currently valued at $13.8 million. Prior to the Vasil upgrade, Cardano had a limited number of working dApps, with less than 10 contributing to the TVL.

However, this number has increased to 18, demonstrating the growing ecosystem on Cardano. The Valentine hard fork triggered in February was also a significant milestone for Cardano.

In conclusion, Cardano’s rise in the DeFi TVL rankings showcases its growing prominence in the decentralized finance space. Despite the absence of major dApps and a decline in ADA’s price, Cardano has attracted significant value and attention from users and investors alike. With ongoing developments and the launch of new dApps, Cardano’s position in the DeFi ecosystem is expected to continue to strengthen.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: [email protected] Phone: +49 160 92211628
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