ADA DeFi TVL Reaches Unprecedented Levels

• Cardano is exhibiting a great deal of growth in its DeFi arm.
• With total ADA deposits in smart contracts at its ATH, the protocol’s relevance is re-emphasized.

Cardano (ADA) has been displaying some bearish movements in its price after the United States Securities and Exchange Commission (SEC) listed it as an unregistered security in the lawsuits filed against the industry’s top two exchanges, Binance and Coinbase.

Despite these bearish sentiments, there has been a slight but significant growth in the protocol’s Decentralized Finance (DeFi) ecosystem in relation to its Total Value Locked (TVL). Data from popular DeFi market aggregator DefiLlama confirmed a parabolic growth in Cardano’s ADA deposits in smart contracts.

The aggregator showed that ADA has hit an All-Time High (ATH) in terms of the total tokens locked on its associated Decentralized Applications (DApps). While as of Monday, July 3rd, the total ADA locked on Cardano smart contracts was pegged at 557.62 million, at the time of this writing, it had reached 568.14 million ADA.

Amongst other metrics, a protocol’s DeFi TVL is one of the most crucial elements to determine the positive performance of the blockchain network. TVL shows the monetary value of the assets that have been deposited in all the product offerings being offered by DeFi protocols, such as lending, staking, and liquidity pools.

Markedly, the TVL has made significant improvements since the beginning of this year, starting with 198.65 million ADA as of January 1 to its present level. This outstanding growth in TVL is a clear indication that investors within the Cardano DeFi world are unwavering in their support and have so much confidence in the ecosystem. On the other hand, the TVL figure is not commensurate with the dollar equivalent because of the slump in the price of ADA.

Cardano TVL Outperforms Other Protocols

Also, this applaudable jump in the total ADA deposits on DeFi is likely to go unappreciated unless it is compared to other key smart contract networks like Solana (SOL).

A close look at Solana shows that its TVL plunged from 20.53 million SOL as of January 1 to its current value of 14.3 million SOL. Compared to all other blockchain protocols that have presented a simulation of a thriving DeFi ecosystem, Cardano is one of the few protocols whose figures have shown a positive growth record in this regard.

Generally, the Cardano ecosystem has been performing relatively well amidst the fluctuating crypto market. Cardano founder Charles Hoskinson once highlighted the protocol’s real adoption and growth as an ecosystem. He emphasized how the blockchain was defying the harshest crypto industry conditions and gaining real adoption.

Additionally, Cardano’s continuous developer activity over time has contributed largely to a significant number of impressive utility additions.

Products like its first Light wallet, Lace, and services such as the advances in its staking offerings have done their part in promoting users’ interests across the board. Its focus on decentralized identity and the pursuit of scalability to drive all of its systems have notably put the Cardano protocol in the spotlight.

In all, it is safe to say that Cardano is one of the most functional smart contract platforms in the Web 3.0 world today.

Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.