Many are admittedly experiencing a crisis of faith when it comes to Cardano’s price performance and DeFi progression. To better get a grip on what’s going on, here’s what some ecosystem metrics reveal.
ADA-lts in the room
At press time, ADA was trading at $0.81, having risen by 1.97% over the past 24 hours while falling by 0.42% in seven days. While this has been a cause of concern for many in the Cardano community who were hoping for quick gains, others – including founder Charles Hoskinson – are convinced that DeFi will take the project to new heights.
It started with a Twitter thread where a self-described “ADA HODLer” shared a picture of Cardano’s rising total value locked [TVL]. Hoskinson added his take and claimed that after the Vasil hard fork in June, more dApps would launch. This, in turn, would reportedly amp up the TVL.
What most also don't understand is that many Cardano DApps are waiting for the Vasil hardfork in June to launch to benefit from pipelining. So it seems we ain't seen nothing yet on TVL https://t.co/mMHxwRrF96
— Charles Hoskinson (@IOHK_Charles) March 12, 2022
Higher than hope?
At press time, Cardano’s TVL was around $188.34 million, having risen by 6.17% in 24 hours.
While certainly impressive when taken in isolation, Cardano’s rank by TVL was 28, giving it a very small part of the TVL share.
Additionally, the number of Cardano active addresses has been on the fall and was around 126,343, at the time of writing.
To that end, what is the Vasil hard fork slated for June and why is it so important? According to a post from IOG, the upcoming hard fork – named after Hoskinson’s late friend – will focus on an “array of scaling enhancements.” A lot of the changes will be geared towards enhancing the development of DeFi, DEXs, and smart contracts. Pipelining is just one scaling method that is part of the overall plan for Cardano,
The post stated,
“…IOG is working across a host of new products and features, from a DApp store and a new light wallet product, to Mithril fast sync solution and sidechains.”
This explains why Hoskinson is certain that dApps and TVL will get a boost this summer.
Beatings will continue until morale improves
But, one must ask how is morale in the Cardano camp? Well, data from Santiment revealed that weighted sentiment is still in the negative zone as ADA’s price moves mostly sideways.
However, one recent controversy has been the way in which Messari’s platform records Cardano’s transaction volumes [24h]. According to Messari’s stats, Cardano’s transaction volume of $32.38 billion put it ahead of Bitcoin and Ethereum combined.
Needless to say though, many investors have been using this to lift their faith and spirits.