- Cardano TVL reached $700M and is now aiming for $1B.
- Can the rapid growth of ADA drive its value up?
Cardano’s [ADA] TVL, or total value locked (TVL), reached an all-time high of $713,000,000 in November. This was due to strong fundamentals as well as trust.
It was an impressive recovery when compared with the almost $500M that were lost in the past cycle.
Source: DeFiLlama
Cardano TVL soars
TVL, for the uninitiated, tracks the amount locked in a blockchain, notably the DeFi protocols of the Cardano networks. TVL’s rise is an indication of increased investor trust.
DeFiLlama states that the two top protocols for Cardano TVL are Liqwid and Indigo lending platforms, as well as Minswap, a decentralized exchange. At press time, they controlled more than 50% of TVL ($430M).
DEX (decentralized Exchange) volumes also reached yearly records.
Cardano DEX (orange) trading volume (orange), which was only $1.9M early in November, has risen up to $31.5M by the time of writing. This is a 17X increase in just one month.
Source: Artemis
Increased DEX volume meant increased user activity. This was positively correlated with the strong price movement in ADA over the last month.
The number of users has increased by 100% from early November’s 30K to the 90K that we have now. Price-wise, ADA soared by 272% in the same time period and reached a new high of $1.3.
ADA pricing action
The rising DEX volumes and the growth in the entire network may fuel ADA to try and reach the $3 cycle high for 2021 if this trend continues over the next couple of weeks or months.
ADA’s chances of reaching 2021 price highs could be validated only if the coin holds above $1, and a clearly formed $1.5 range-high in the previous cycle.
Price pumping in recent weeks has pushed Altcoins to a range between $1 and $1.5 that was formed back in 2021. ADA consolidated in this range for three months before a break out that reached $3.
TradingView: ADA/USDT
Click Here to Read Cardano [ADA] Price Prediction 2024-2025
If this pattern continues, the price of ADA may fluctuate from $1 to $1.5 over the next couple weeks.
Conclusion: ADA’s recent price rise wasn’t just a FOMO event; it was also backed by strong fundamentals.
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Source: ambcrypto.com
