At a time like this, analysis of the strength and weakness of protocols like Cardano (ADA) that are in the crosshairs of the United States Securities and Exchange Commission (SEC) is important to the community. Drawing on this assumption, prominent Cardano advocate Dan Gambardello has shared a number of interesting facts to show how bright is the future of the blockchain protocol.
Gambardello noted that despite the falling prices, bearish sentiment and FUD spreading that ADA is done for, the protocol's total value locked (TVL), a prominent indicator of DeFi growth, has continued to rise. He noted that the TVL has jumped to 600 million ADA, which in USD terms, has topped $120 million.
🔍If you want an idea of how big #Cardano can be, read this!— Dan Gambardello (@cryptorecruitr) June 13, 2023
Despite price fluctuations, bearish sentiment, and many people exclaiming $ADA is over, TVL can be a leading indicator of things to come, especially when compared to the success of Ethereum. 🧵
With the growth of TVL comes trust, which Gambardello believes is just the beginning. He drew a comparison between the stage at which Cardano sits right now and where Ethereum (ETH) was before the halving of 2020. At the time, Ethereum TVL was pegged at a TVL of $400 million, a figure that exploded to about $129 billion in the next bull market, which came less than two years later.
This parabolic growth trend was also accompanied by 22x growth in the coin's market capitalization from $25 billion to $568 billion.
Thesis for Cardano's growth
In his thesis bolstering the potential for Cardano's growth, Gambardello said while the blockchain founded by Charles Hoskinson came late to the market, it was built to "be a more secure, scalable, decentralized, and economical blockchain than Ethereum."
The appraisal Gambardello is giving Cardano is visible in the products Cardano is launching today. While its flagship Lace Wallet remains one of the latest sensations in the Web3.0 world today, Cardano has also launched both the Marlowe smart contract protocol and Hydra Head scalability tool on mainnet.
Besides the current distraction from the SEC, which named ADA a security, the digital currency is building and positioning itself for a promising future.