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Digital investment firm Waves Financial has announced the launch of a new ADA yield fund to support Cardano's rapidly expanding DeFi platform start-ups.
The fund aims to provide liquidity, with millions in line to support new decentralized finance (DeFi) platforms launched in the Cardano ecosystem, starting with an initial $100 million. Wave Financial LLC (Wave) is a Los Angeles-based investment management company that provides institutional and private wealth digital asset management solutions.
As stated in a release, the new fund will support the new decentralized exchanges, lending protocols and stablecoin issuers building on Cardano. Presently, more than 500 projects are building on Cardano.
At the moment, seven DEXes are contributing to Cardano's TVL, which is presently at $295.27 million, according to DefiLlama. With the inclusion of staked assets, its TVL stands at $404 million. MuesliSwap became the first decentralized exchange to launch on mainnet in late December. SundaeSwap, the most anticipated Cardano project to date, took off in January. Presently, the top Cardano DEX has a modest $102 million in total value locked. Minswap, which launched in early March, remains the largest DEX, with $188 million in total value locked.
Cardano sees institutional inflows
According to data from IntoTheBlock, ADA records an inflow of institutional funds to the network as on-chain transaction volume faced a 50-time increase in 2022.
@Cardano is experiencing increasing institutional demand
— IntoTheBlock (@intotheblock) March 29, 2022
The volume of on-chain transactions >$100k has increased by 50x just in 2022
Yesterday, a total of 69.09b $ADA were moved in these large transactions, representing 99% of the total on-chain volumehttps://t.co/8ME8STvRSF pic.twitter.com/aqH7hYIPiV
In additional data provided by the on-chain analytics firm, the volume of large transactions exceeding $100,000 jumped by 50 times in 2022.
On March 28, a total of 69.09 billion ADA were moved in these large transactions, representing 99% of the total on-chain volume. With the release of new solutions on the chain, Cardano becomes more relevant for institutional investments that often look for real value behind the project rather than speculative returns.
The number of whales on the Cardano network has also increased by 1.7%, with roughly 42 addresses holding 1,000,000 to 10,000,000 ADA created since March 21. These whales reportedly hold between $1.2 million and $12 million in ADA, according to Santiment data.
Alex Dovbnya
Vladislav Sopov
Dan Burgin