08 March 2023 16:23, UTC
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The Decentralized Finance (DeFi) ecosystem on the Cardano blockchain network is growing at a sporadic rate, and the metrics confirm this growth. Data from DeFiLlama has shown that the Total Value Locked (TVL) on Cardano has hit a new all-time high of 336.1 million ADA coins.
This figure, worth $110.39 million at the time of writing, featured consistently steady growth from the start of February until the present time. With the proliferation of DeFi protocols on Cardano, Minswap dominates TVL with a total of $40.1 million locked, representing a 36.01% dominance.
Cardano is a smart contract hub with a high level of throughput, at least when compared to the existing alternatives. Despite its legacy, technological advancement and publicity, the protocol lags behind its rivals, including Solana (SOL) and Avalanche (AVAX).
Hitting this current ATH in TVL is a notably impressive milestone as it showcases the steady onboarding of new projects on the blockchain. As reported earlier this week, the Cardano network is highly focused on protocol functionality and is making concerted efforts to build its Hydra Head sidechain that will embody the scalability of the underlying blockchain.
Cardano needs to double down
A major way to rank a major smart contract hub today is through its TVL lock and the total number of transactions being carried out on the protocol. In both instances, Cardano is lagging behind significantly as Binance Smart Chain (BSC), for instance, has a TVL worth $4.74 billion.
Ethereum is the protocol to compete with; however, the need to first outpace other known Ethereum killers has created the need for Cardano to double down on its efforts to grow its DeFi economy across the board. The coin is down by 1.98% at the time of writing to $0.32.
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