Cardano's TVL Hits 10-Month High: What Investors Need to Know
Cardano (ADA) has made a remarkable comeback in the second quarter of 2023, after experiencing a slump. At the time of writing, ADA is trading 14% higher over the last seven days, showing strong bullish momentum. One of the key indicators of Cardano's recovery is its total value locked (TVL), which has been steadily growing since the start of the year and has now reached around $156.62 million, marking a $107 million recovery from its lowest point in the past four months.
This significant bounce back in TVL is the largest Cardano has experienced since its decline started in March 2022, and it signals a return of confidence in the Cardano ecosystem. This observation is crucial for investors, as it is likely to encourage more people to hold ADA for the long term, considering the coin's promising year-to-date (YTD) performance.
At the time of writing, ADA is trading at $0.4361, after a 13% upside in the last one week, riding on the bullish momentum that has been prevailing since the beginning of 2023. The altcoin is currently trading at a 79% premium on a YTD basis, indicating a strong bullish bias for ADA. However, despite its bullish performance, there are signs of sell pressure accumulating, with a key resistance level retest at $0.42 and the RSI suggesting that ADA is entering into overbought space.
Will ADA's upward trend continue?
ADA's mean coin age and MVRV ratio are currently at their highest levels in the past one month, although the mean coin age has slightly dropped since the first week of April indicating a significant amount of ADA changing hands recently. Supply distribution data also reveals that addresses holding over 1 million ADA have reduced their balances by a noteworthy margin in the first week of April, while other whale addresses have slowed down their accumulation since then, but the price of ADA continued to rally. This could be attributed to incoming retail demand.
Despite short-term sell pressure and potential disruptions to ADA's strong performance, the prospects for ADA adoption remain positive. With the TVL reaching a 10-month high and strong bullish momentum, ADA has transformed from being one of the worst-performing top cryptocurrencies to one of the most promising ones. As Cardano continues its recovery from last year's crash, investors are keeping a close eye on ADA's performance, which could indicate further growth potential in the long term.
Cardano Improves Cross-Chain Features for $100M+ DeFi TVL
Prepare yourself, because Cardano is about to enter the next level of cross-chain capabilities! The decentralized finance revolution has just gotten a boost thanks to a network functionality upgrade announced by developers on Thursday.
According to tweets from IOG, the maintainer of Cardano's code, the proposal, which was submitted on Wednesday, will be launched on February 11th at precisely 00:00 UTC. However, before it is released on mainnet, it will be put through its paces in a virtual testing environment, giving the team a taste of its real-world potential.
The upgrade is set to bring a whole new level of cryptography and cross-chain dapp development to the Plutus smart contract platform on Cardano.
This upgrade will make it possible for developers to build applications that connect Cardano with other blockchains, giving users access to a wider range of financial services. And with dapps, there's no need for middlemen. Instead, smart contracts power these financial services, offering lending, borrowing and more, all powered by tokens.
It's no secret that the world of Cardano DeFi has been on fire lately, with total locked value (TVL) reaching $100 million last week. Wingriders and Minswap account for more than half of this value, according to DeFiLlama data.
The launch of the overcollateralized djed stablecoin earlier this month has only added fuel to the fire. With a backing of other tokens and requiring 400-800% in collateral value, djed is designed to stay stable even in volatile market conditions. Plus, holders of Cardano's ADA cryptocurrency can earn rewards by staking their coins to mint djed stablecoins, providing liquidity to the ecosystem.
All these enhancements could have a positive impact not only on Cardano's native token ADA, but also on the tokens of projects built on the Cardano platform. As of Thursday, ADA is trading at 39 cents with a market cap of $13 billion.
It's clear that the future is looking bright for Cardano and its DeFi ecosystem.
First published on Apr 14, 2023