By
Godfrey Benjamin
April 26th, 2024
Cardano’s DeFi total-value-locked crosses a significant $450 million with its native stablecoin Djed contributing a significant portion. Smaller protocols like LendFi and Spectrum Finance recorded an impressive 90% surge in TVL.
Cardano’s native cryptocurrency ADA has registered massive gains shooting over 15% soon after the FOMC meeting concluded on Wednesday. As of press time, the Cardano (ADA) price is trading 13.85% up at $0.6495 with a market cap of $22.9 billion.
The recent price rally for ADA also comes on the backdrop of solid growth in Cardano’s decentralized finance (DeFi) ecosystem. Over the last month, the ADA price is already up by a staggering 80%. Simultaneously, leveraged futures bets on ADA price volatility experienced a remarkable 100% growth during the same period, reflecting increased market activity and investor confidence in Cardano’s expanding ecosystem.
The total value locked (TVL) in projects based on the Cardano blockchain surged to a new high, surpassing $440 million, marking a substantial increase from the previous peak of $330 million recorded in April. The notable growth, particularly in the last week, was propelled by lending protocol Indigo and on-chain exchange Minswap, both witnessing TVL spikes of over 50% to nearly $100 million each.
One of the significant contributors to this upswing is the Djed DJED stablecoin, a US dollar-pegged token, experiencing a remarkable 45% increase in its supply over the past week. This surge suggests a growing influx of capital into the stablecoin as investors seek opportunities to capitalize on yields.
In addition to the prominent players, smaller protocols like LendFi and Spectrum Finance recorded an impressive 90% surge in TVL, indicating a willingness among users to explore riskier investments within the Cardano ecosystem. This on-chain growth has had a positive impact on the price of Cardano’s ADA token, utilized for network activity payments.
The Cardano (ADA) Whale Action
Whales are making waves in the Cardano blockchain network, driving a substantial surge in transactions for ADA, the native cryptocurrency of Cardano. Over the last 24 hours, the on-chain analytics platform IntoTheBlock reported a remarkable uptick, with ADA transactions exceeding $1.5 billion.
These large transactions, each valued at a minimum of $100,000, have significantly boosted the overall transaction volume from $17.96 billion to an impressive $19.47 billion. This surge in substantial transactions has also contributed to the rise in the volume of Cardano tokens, escalating from $32.32 billion ADA to $33.66 billion ADA.
Despite a recent dip to $0.55 earlier in the week, Cardano absorbed the selling pressure and demonstrated resilience. Notably, ADA experienced a decisive breakout from the resistance trendline, signaling a potential upward trajectory.
If market conditions align with the observed patterns, the post-breakout rally is anticipated to target key levels, particularly $0.737 and $0.87, suggesting a potential growth of 35%. This surge in whale activity and positive price movements underscore the current strength and momentum within the Cardano ecosystem.