Cardano DeFi TVL nears record $700M, ADA skyrockets 20%

Cardano’s DeFi ecosystem is hitting new heights, with its total value locked (TVL) nearing an all-time high of $700 million.

DeFillama data shows that the blockchain network is riding the current bullish market sentiment by adding over $400 million to reach $680 million as of press time. This number marks a massive turnaround for the blockchain network, which saw its TVL drop to as low as around $50 million in November 2022 following FTX’s shock collapse.

TVL is often seen as a barometer for the health and trust of a DeFi ecosystem. The metric reflects a blockchain network’s growing appeal in the crypto space, with an increase signaling a surge in investor’s confidence in the platform.

In addition to its TVL growth, Cardano’s decentralized exchanges (DEXs) reported a trading volume of $22.35 million in the past day, the highest since December 2023. According to DeFillama data, weekly DEX trading volume also hit $117.32 million, marking the best performance since May 2023.

Speaking on these numbers, Cardano founder Charles Hoskinson said they represent the dawn of DeFi activity on the blockchain network while highlighting the ecosystem’s progress and growing adoption.

ADA price rally

The improved DeFi activities come as Cardano’s ADA token has emerged as a top performer during the current market uptrend.

Over the past week, the crypto asset has gained more than 20%, reaching a peak of $1.21. According to CryptoSlate data, this is ADA’s highest price level since 2022.

This momentum has propelled Cardano’s market capitalization to over $40 billion, making it the ninth-largest digital asset globally. The rally aligns with broader bullish market conditions and several ecosystem advancements.

Market observers noted that recent developments — including the implementation of Zero-Knowledge (ZK) technology and the transition towards decentralized governance — have boosted Cardano’s prospects.

According to them, these innovations have provided a strong foundation for sustained growth and solidified the network’s position as a critical player in the crypto space.