Advertisement
AD

Main navigation

Cardano (ADA) to Make Price Comeback, Here's Leading Indicator, per Crypto Capital Founder

Advertisement
Thu, 6/04/2023 - 10:45
Cardano (ADA) to Make Price Comeback, Here's Leading Indicator, per Crypto Capital Founder
Cover image via www.youtube.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Dan Gambardello, the founder of Crypto Capital Venture, sees the likelihood of an ADA price recovery. He names a potential trigger for this: Cardano DeFi ecosystem inflows.

Advertisement

Gambardello states that the growth in total value locked (TVL) on Cardano will prove to be the most obvious leading indicator of the incoming ADA price increase.

Cardano's total value locked, or TVL, denominated in ADA, keeps growing, setting new highs of 420.26 million ADA on March 22.

Advertisement

According to data from DefiLlama, Cardano's TVL stands at nearly $144 million. The value is even greater when staking is taken into account, coming in at about $155 million.

Related

At the time of writing, Cardano's ADA was down 2.80% in the last 24 hours to $0.384. The crypto market is seeing fresh declines of Bitcoin, and the majority of crypto assets are recording losses at press time.

Why is Cardano TVL important?

The overall value of crypto assets deposited in a decentralized finance (DeFi) system, or in DeFi protocols in general, is known as the "total value locked" (TVL). It has become a crucial metric for assessing interest in this specific area.

A rise in a DeFi platform's TVL is often followed by an increase in liquidity and other factors that support the project's success.

Related

Some or even all deposits on a DeFi platform may be denominated in its native token. Thus, the protocol's TVL in dollars increases in step with the value of its native token. In the case of Cardano, 406.69 million ADA are currently locked in DeFi.

Some analysts believe that the DeFi TVL might be used to determine whether the associated currency is priced fairly. A token may appear to be overvalued or undervalued depending on how extreme the connection is between its TVL and its market cap.

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD