Main navigation

Cardano Records Spike in DeFi Inflows, ADA Price Continues to Consolidate

Thu, 04/28/2022 - 14:50
article image
Tomiwabold Olajide
Cardano DeFi ecosystem has attracted nearly $10 million more in funds
Cardano Records Spike in DeFi Inflows, ADA Price Continues to Consolidate
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

According to data from DefiLlama, the Cardano DeFi ecosystem has attracted nearly $10 million more in funds, recording a positive 24-hour change of nearly 4% in its total value locked (TVL). This is reflected in the surge of the total value locked (TVL) from roughly $268 million on April 27 to $278 million on April 28.

Without the inclusion of staked governance tokens in TVL valuation, Cardano's TVL stands at about $203 million. While the increase might seem insignificant, Cardano's TVL (staking included) has steadily declined since peaking at $434.74 million on March 28.

Total Value Locked (TVL) in Cardano, Courtesy: DefiLlama

Total Value Locked (TVL) refers to the total worth of crypto assets deposited in a decentralized finance (DeFi) protocol—or in DeFi protocols. Cardano had witnessed growth in its TVL after the launch of projects Sundaeswap and Minswap, which contributed immensely to this metric.

The ADA price is currently consolidating after testing lows of $0.816 on April 26. At the time of publication, ADA was trading down 1.67% for the day at $0.828. At its present price, ADA remains down 73.29% from its all-time highs of $3.10 attained in September 2021. Despite the price drop, Cardano continues to mark significant milestones.

IOG: Interoperability is key to blockchain growth

As stated in a recent blog post, the Cardano community is presently working on Cardano's wider adoption. IOG says the ability to work with other blockchains or interoperability is key to this.

According to Cardano blockchain insights, there are over 4.5 million native tokens, over 5,000 unique tokens (NFTs) and more than 900 projects building on Cardano to date.

As previously covered by U.Today, Cardano's parent company IOHK, and Wanchain, announced their collaboration on enabling interoperability between the Cardano mainnet, Cardano sidechains and other blockchain networks. Here, Wanchain will become an EVM-compatible sidechain to Cardano.

Cardano's parent company, IOG, also says it is planning to release a new permissionless EVM sidechain this year. This sidechain will allow developers to write Solidity smart contracts on Cardano and to create EVM compatible dApps and ERC20-compatible tokens while reaping many of the benefits of Cardano.

article image
About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.