Altcoin
A new high for Cardano – Here’s what you should know
The recent spike in user activity on Cardano has pushed its DeFi TVL to an all-time high
- Cardano’s TVL has hit an all-time high
- The chain has also seen increased activity over the past month
The total value locked (TVL) in Cardano’s decentralized finance (DeFi) ecosystem has hit a new all-time high, data from DefiLlama revealed.
Cardano’s TVL touching this new high indicates increased adoption of the DeFi protocols housed within the chain. The network’s TVL has risen by almost 50% in the last month alone. This has allowed it to rank as the ninth blockchain network in terms of DeFi TVL.
At press time, Cardano’s TVL was worth $376.54 million.
Ecosystem-wide growth
The TVL hike on Cardano in the last 30 days coincides with the uptick the chain has seen in user activity within the same period.
In fact, AMBCrypto found that the past month has been marked by a surge in the daily count of active addresses that have completed at least one transaction on the Cardano network.
According to Artemis, user activity on Cardano currently sits at its highest level in three months.Information retrieved from the on-chain data provider showed that on 9 December, Cardano recorded a single-day high of 77,000 daily active addresses that completed at least one unique transaction on the chain. This represented the highest single-day daily active address count recorded since July.
Likewise, on the same day, Cardano’s daily transactions count registered a year-to-date high of 113,000, according to Artemis’ data.
Source: Artemis
One of the most prominent indicators of the growth in demand for Cardano is the explosive growth in trading volumes on its decentralized exchanges (DEXs). On 9 December, the total volume of trades executed through Cardano DEXs was $18 million. The last time the chain recorded a DEX trading volume this high was back in June.
ADA is not left behind
The increased activity on Cardano’s network and the general market’s bullish sentiment have resulted in a 47% hike in ADA’s value in the past month. At press time, the altcoin was exchanging hands at $0.57, its highest price level since August 2022, according to data from CoinMarketCap.
Read Cardano (ADA) Price Prediction 2023-24
The increased demand for ADA may be attributable to how profitable transactions involving the coin have been recently.
AMBCrypto found that its Market Value to Realised Value ratio (MVRV) – which tracks the ratio between an asset’s current market price and the average price of every coin or token of that asset acquired – recently crossed above the zero line for the first time since January 2022.
A positive MVRV ratio above one signals that an asset is overvalued, and most investors hold the coin at a profit. At press time, ADA’s MVRV ratio was 1.76%. This meant that holders were assured of at least 2% profit on their investments if they sold their ADA at its current value.
Source: Santiment
