Cardano’s DeFi ecosystem is reaching new heights, with total value locked (TVL) approaching an all-time high of $700 million.
DeFillama facts shows that the blockchain network is following current bullish market sentiment by adding over $400 million to reach $680 million at the time of writing. This number marks a huge turnaround for the blockchain network, which saw its TVL drop to around $50 million in November 2022 following the shock collapse of FTX.
TVL is often seen as a barometer of the health and confidence of a DeFi ecosystem. The metric reflects the growing appeal of a blockchain network in the crypto space, with an increase indicating a rise in investor confidence in the platform.
In addition to the TVL growth, Cardano decentralized exchanges (DEXs) reported trading volume of $22.35 million last day, the highest since December 2023. According to data from DeFillama, weekly DEX trading volume also reached $117.32 million, which is the best performance since May 2023.
Cardano founder Charles Hoskinson spoke about these figures said they represent the beginning of DeFi activity on the blockchain network while highlighting the progress and growing adoption of the ecosystem.
ADA Price Rally
The improved DeFi activity comes as Cardano’s ADA token has emerged as a top performer during the current upward market trend.
Over the past week, the crypto asset has risen more than 20%, reaching a peak of $1.21. According to CryptoSlate According to data, this is ADA’s highest price level since 2022.
This momentum has pushed Cardano’s market capitalization to over $40 billion, making it the ninth largest digital asset globally. The rally is in line with broader bullish market conditions and several ecosystem improvements.
Industry observers noted that recent developments – including the implementation of Zero-Knowledge (ZK) technology and the transition to decentralized governance – have boosted Cardano’s prospects.
According to them, these innovations have laid a strong foundation for sustainable growth and strengthened the network’s position as a critical player in the crypto space.
