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Cardano (ADA) Beats Solana, Aave and Terra as Market Capitalization Reaches $40 Billion

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Mon, 03/28/2022 - 13:56
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Arman Shirinyan
Cardano beats largest projects in the industry as its marketcap reached $40 billion
Cardano (ADA) Beats Solana, Aave and Terra as Market Capitalization Reaches $40 Billion
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Cardano (ADA) enters seventh place as one of the biggest blockchains in the world with more than $40 billion in total market capitalization. The increase was followed by both market and fundamental growth of a project that recently celebrated $300 million in TVL.

Why did ADA's market cap spike?

The main reason behind such a swift increase in capitalization is tied to the growth of the network from both a market and fundamental perspective. The capitalization of the project correlates with the price of the underlying ADA token—the price of which has recently reached $1.2.

Cardano TVL data
Source: Coinmarketcap

The price increase could not have been possible without a growing number of various decentralized solutions powered by Cardano. Previously, U.Today described two solutions that users would be able to see in this year: decentralized peer-to-peer lending and borrowing and an interoperable Layer 2.

Why did the TVL of Cardano show a 350% increase in March?

The main reason behind such an increase is tied to at least two factors: release of new DeFi platforms like Minswap and the general recovery of the DeFi industry that lost some of its popularity back in December-January.

Cardano TVL

According to DeFiLIama, the total value of funds locked across all projects in the industry increased from around $200 billion to $223 billion at the end of March. As for Cardano, the total value of funds locked on blockchain-powered platforms and apps increased from $134 million to $326 million in the last 28 days.

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Inflows into the DeFi industry indicate that the market's demand for risk-on assets increased once again, and investors are more actively redistributing their portfolios, exposing themselves to riskier options like high-APY stablecoins.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.