Cardano has been making waves in decentralized finance (DeFi) ever since it debuted smart contract capabilities on the network. Development has accelerated, making it the network with the most ongoing developments. This activity has translated into an increase in total value locked (TVL) on the network. And while this value has been declining as a whole, it recently posted a rally that saw it jump 30% in a single day.
Cardano TVL on the rise
Shortly after multiple decentralized exchanges (DEXs) were launched on the Cardano network, the TVL rose rapidly. This was a result of the accelerated adoption that occurred with notable personalities like Snoop Dogg jumping on the platform and bringing their huge fanbases with them. At its peak, Cardano’s TVL had grown to $326 locked in March.
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However, just as the market had declined, the DeFi space had also taken a huge hit. The result of this was that TVL had fallen over 50% from its all-time high and the Cardano network, like other networks, had seen its TVL drop.
On Monday, the network’s TVL had fallen to $118 million, its lowest level in a two-month period. However, this would prove to be short-lived given that a raise set him back above $150 million in TVL. In a 24-hour period, Cardano’s TVL had added over 30.96% to its value, taking it to its current position of $155.24 million locked on the network.
ADA price on the rise following surge in activity | Source: ADAUSD on TradingView.com
Minswap (MIN) continues to dominate the network, while newcomer WingRiders (WRT) has beaten the OG SundaeSwap (SUNDAE) protocol to claim second position in terms of TVL. SundaeSwap is now in third place with a total of $36.51 million locked.
DeFi TVL is still fighting
2021 was without a doubt the year of decentralized finance (DeFi) given the amount of TVL that was added in the span of a year. From a trend of $21 billion in January 2021, DeFi TVL peaked at $230 billion in the same year. This would set the tone for the rest of the year. That is until the Dec. 4 crash shook the cryptocurrency market to its core.
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The decline that would start from this point would be very evident. In a matter of six months, the DeFi space has now lost over $115 billion, culminating in over half of its TVL being wiped out.
Currently, the cryptocurrency market is in a recovery trend as Bitcoin has rallied above $30,000. This recovery has had an impact on DeFi TVL, but not much. TVL is up 4.87% in the last 24 hours, bringing the total value locked to $112.39 billion at the time of writing.
Featured image from Young Platform, chart from TradingView.com
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