The Cardano network has experienced a significant surge in its total value locked (TVL), which has increased by 150% since reaching its local bottom. This impressive growth is closely tied to renewed interest in decentralized finance (DeFi), as investors flock back to yield farming and decentralized exchanges (DEXes) gain popularity once again.
DeFi has been on fire lately, with many investors seeking opportunities to maximize their returns in the decentralized finance space. Yield farming, in particular, has been a primary driver behind the resurgence, as it allows users to earn passive income by providing liquidity to various DeFi platforms. Additionally, DEXes have witnessed a sharp rise in trading volume, further illustrating the growing enthusiasm for DeFi.
Despite not being the primary choice for DeFi enthusiasts, Cardano offers a wide range of decentralized financial solutions that have contributed to the surge in its TVL. The network's focus on scalability, interoperability and sustainability has made it an attractive alternative to other DeFi platforms.
Cardano's growth in TVL showcases the network's potential to become a significant player in the DeFi ecosystem. The solid growth could lead to the swift and highly anticipated recovery of Cardano on the market since ADA has been one of the worst performing assets in the top 20 of the cryptocurrency market.
While it may not be the go-to network for DeFi enthusiasts, Cardano still offers a wide range of benefits for both developers and users; hence, it might gain even more traction as the recovery of the market continues.
At press time, Cardano is trading at $0.34 and consolidating at the local resistance level reflected in the 50-day moving average.