- Cardano’s DeFi TVL is hitting new highs.
- Proponents have begun to name factors that will drive up the TVL figure.
- Despite increasing use cases, ADA price continues to falter.
Cardano’s DeFi ecosystem is posting some shocking figures that point to rapid growth. The total value locked (TVL) in Cardano’s barely two months old DeFi ecosystem is now closing in on $200 million.
Wen $1 billion TVL? Cardano proponents speculate
Per data from the DeFi market aggregator, DefiLlama, the total value locked across all decentralized exchanges and applications running on the Cardano blockchain has set a new high. At its peak today, Cardano’s TVL reached $174 million.
This is a remarkable leap forward as market participants have noted. Just last week, the TVL stood at around $130 million. Several DEXs have been performing impressively including SundaeSwap, Meld, and MinSwap, with the latter two now closing in on a value of $50 million each.
Prominent members of Cardano’s thriving Twitter community pointed out that the proof-of-stake blockchain had been adding over $70 million to its TVL every month since the first DEX launched in January.
The pundits went to speculate on when this progress will see Cardano reach a TVL of $1 billion.
The query has garnered some responses from other market participants. One observer opined that the TVL target may not be tied to a specific time, but to when the blockchain will host stablecoins.
At the moment, there are several Cardano native stablecoin projects under development including COTI’s DJed and Ardana. However, these projects do not yet have a release date. The earliest stablecoins on the network may potentially be USDT and USDC. These may be introduced once Milkomeda, a cross-bridge Cardano L2 already in testnet, launches.
Another narrative of what may catalyze the milestone was noted to be after Cardano’s planned upgrade in June. This target is explained to be when Cardano Improvement Proposals (CIPs) will be implemented, which will allow more complex DApps to function.
The observation is coming after IOHK, the development arm of the blockchain, recently announced that it had two major upgrades planned for June and October. These upgrades will each introduce several key features to the blockchain that will optimize and scale Cardano’s capabilities.
Development on Cardano is advancing rapidly
Projects building on Cardano are not showing any signs of slowing. Multiple projects have been making significant announcements.
SundaeSwap disclosed that it had completed its first run with implementing community governance. The DEX also integrated three more wallets that can interact with its protocol.
Similarly, MinSwap revealed that more liquidity pools had been added to its platform. Meanwhile, the price of ADA has been in a drawdown along with the rest of the crypto market. ADA is currently trading at $0.85, up 5.27% in the last 24 hours.