📢 The ProPicks AI strategy to watch when Tech rally slows down. It did 2X the S&P in July!Unlock AI Insight

Cardano (ADA) Boost Might Be Fueled by Its DeFi Arm, Here's Reason

Published 2023-08-25, 07:37 a/m
Cardano (ADA) Boost Might Be Fueled by Its DeFi Arm, Here's Reason
ADA/USD
-

U.Today - Cardano (ADA) is currently being overpowered by the bears as its price is constantly being battered amid a broader market sentiment downturn. While the coin is currently changing hands at a a 1.36% plunge in the past 24 hours, the obvious succor for the protocol lies in the growth being picked up in its decentralized finance (DeFi) ecosystem.

The Cardano DeFi offshoot is arguably the most vibrant aspect of the proof-of-stake (PoS) protocol today. Irrespective of the current outlook of the blockchain, the embrace of its associated dApps and their offerings are a testament to the value that is being brought into the broader Web3.0 ecosystem through Cardano.

data from DeFiLlama, Cardano's current total value locked (TVL) is pegged at $160 million. While this figure pales in comparison to other mainstream PoS protocols like Ethereum and Solana, there has been a in the actual number of ADA coins locked in Cardano DeFi smart contracts from the start of the year.

According to available data, the ADA lockup has grown from 554.76 million ADA from the start of the second quarter to 602.78 million as of today.

Cardano nursing adoption hopes

As far as the Cardano protocol is concerned, the goal to dominate the crypto ecosystem is highly based on how well offerings from innovators on the network are embraced by the public.

This adoption is poised to fuel the demand for ADA coins, which can further drive up the way the coin is acquired on secondary markets. While Cardano was recently by the U.S. SEC as a security, alongside other top altcoins, protocol founder Charles Hoskinson recently that the regulator is not coming after the coin.

The emphasis on protocol upgrades and developments, as well as adherence to the principles of decentralization, have generally helped position ADA as a coin that will win in the long term.

This article was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.