Cardano DeFi TVL Grows 100% In A Month
As of February 7, DeFi protocols in Cardano, a proof-of-stake smart contracting platform, had locked in over $100 million in user assets.
Cardano DeFi protocols command a total value locked (TVL) of slightly more than $103 million, which is more than double the amount on January 1. Cardano TVL was valued at $48.95 million earlier this year.
Several factors could be causing TVL to rise. However, the overall recovery in the crypto markets is at the top of the list. The rising tide of Bitcoin, which rose from under $15,000 to more than $24,000 in early February, aided the rise of ADA, Cardano’s native currency.
Cardano’s DeFi TVL is growing faster than the market as a whole. To illustrate, from January 1 to February 7, total DeFi TVL across all chains increased by approximately 20%, rising from around $38 billion to $48 billion. Cardano DeFi TVL increased by more than 100% during this time period.
The truth is that several factors could be driving the revival of DeFi activities in Cardano. After a biting crypto winter which saw ADA drop by more than 70% from 2021 highs, markets appear to be recovering. This may be boosting users’ confidence to engage in DeFi, including in protocols launched on Cardano.
The proof-of-stake smart contracting platform has also been implementing changes and adding features to enhance scalability.
(With inputs from Shikha Singh)
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