Cardano’s decentralized finance (DeFi), has seen great success since the introduction of smart contract capabilities to its network. It is the network with most development. The network has seen an increase in total value locked (TVL), as a result. Even though this value was declining overall, it has seen a 30% increase in the past few days.
Cardano TVL is on the Rise
The TVL quickly rose after several decentralized exchanges were launched via the Cardano network. It was because of the rapid adoption, which resulted in notable celebrities such as Snoop dogg taking the platform and bringing with them their massive fanbases. At its peak, Cardano’s TVL had grown as large as $326 locked back in March.
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The DeFi market suffered a similar decline. TVL fell more than 50% from the peak, and Cardano’s TVL, as with other networks, began to decline.
On Monday, the network’s TVL had dropped to $118 million, its lowest in a two-month period. This would be temporary, however. It was boosted by a surge that brought it up to $150 million. In a 24-hour period, Cardano’s TVL had added more than 30.96% to its value bringing it to its current position of $155.24 million locked on the network.
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Minswap is still the top network. WingRiders, a newcomer to the market (WRT), has surpassed SundaeSwap’s (SUNDAE) for the second spot in terms TVL. SundaeSwap currently ranks third with an overall of $36.51 million.
DeFi TVL Still Struggling
Decentralized finance was the year 2021, given the sheer volume of TVL that was created in a short period of time. DeFi TVL reached a peak of $230 billion that year, from a trending price point at $21 billion in Jan 2021. That would have been the start of the year. This is up until December 4, when the cryptocurrency market was rocked to its core.
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This point would mark the beginning of a decline. Within six months, more than $115 million has been lost by the DeFi sector, with more than half its TVL now gone.
The crypto market has been on the rise as bitcoin is now worth more than $30,000. Although the recovery of bitcoin has seen a significant impact on DeFi TVL, it is not large. TVL has increased by 4.87% over the past 24 hours to reach $112.39billion as of the writing.
Featured image taken from Young Platform. Chart from TradingView.com
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