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Cardano's Key Ecosystem Metric up 30% in 2023, Here's What You Should Know

Tue, 01/10/2023 - 08:33
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Gamza Khanzadaev
Cardano's total value locked is up 30% since beginning of year, with this as major reason
Cardano's Key Ecosystem Metric up 30% in 2023, Here's What You Should Know
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According to DefiLlama, Cardano's total value locked (TVL) has increased by 30% since the beginning of the year. From less than $50 million at the start of 2023, it had risen to $64.7 million by the end of the first 10 days of January.

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Recall that TVL is one of the key indicators of a blockchain, showing how much is currently invested in it. The higher the amount of value locked, the more the project is trusted, and the lower the risks of a dramatic collapse in staking or farming.

So far, Cardano has three projects leading the way, with a total value locked in at more than $10 million. The unconditional leader among them is decentralized project Minswap, with a TVL of $26.55 million and a corresponding domination of 41.05%.

It is not just ADA price

One could attribute the rise in TVL on Cardano to the skyrocketing price of the blockchain's native token, ADA, by 28.1% since the start of January. But that is only part of the puzzle.

Cardano (ADA) Suddenly Soars 17%

So, while a significant increase in the price of Cardano token has benefited the key metric, according to the same source, total value locked in ADA has increased by more than five million tokens. This means that, in addition to the growth in value already locked in, new tokens have also flowed into the protocols on Cardano in quite significant volumes.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.