DeFi protocols increase on Cardano; What does it mean for the ADA? | spcilvly

The total value locked (TVL) in the Cardano (ADA) DeFi ecosystem has surpassed $160 million with a near 10% increase in deployed capital, increasing the value of Cardano as a decentralized financial chain and increasing liquidity of their protocols and tokens.

According to data recovered by Finbold from DefiLlama On October 5, the Cardano network saw a 9.26% increase in its 1-week TVL. Reaching $161 million in total value locked also meant an increase of 1.86% in the last 24 hours and 0.67% monthly, for this metric.

Total value locked in Cardano protocols.
Total value locked in Cardano protocols. Fountain: DefiLlama

Despite a seemingly small increase in the last 30 days, having positive results already provides competitive advantages to the Cardano network, as most chains have seen investor and user capital flow out of their protocols, resulting in TVL losses.

With this rise, Cardano continues to slowly prove its value as a growing, albeit still largely experimental, DeFi environment. Interestingly, the TVL of $161 million represents 1.75% of ADA’s market capitalization of $9.17 billion at the time of publication.

Top DeFi Protocols on Cardano

It is important to say that the total value locked on a given chain is measured by the total amount of tokens that are invested in all DeFi protocols created on this blockchain. This metric takes into account different applications such as staking, liquidity providers, lending, borrowing, and more.

Cardano DeFi Protocols Ranked by TVL
Cardano DeFi Protocols Ranked by TVL. Fountain: DefiLlama

Minswap (MIN), a decentralized exchange, is the current leader with $42.41 million TVL. However, Indigo (INDY) can take its position at any time, as INDY has been growing in value lately, with increases of 12.61% and 17.44% in locked value from last week and last month, respectively. Indigo is a collateralized debt protocol, for decentralized derivatives operations.

Liqwid Finance (LQ), a lending protocol like AAVE, and Djed Stablecoin, a decentralized stablecoin like DAI on Ethereum, each hold $19.23 million and $11.14 million TVL, respectively. With lower growth, no more than 10% in the three time horizons.

Last but not least, another lending protocol, Optim Finance, has been conquering new ranks and investor interest, with the highest TVL among other Cardano protocols, with +6.80% in one day, a +19.08% in the last seven days. and +21.65% in one month.

As more investors and users begin to pour capital into the Cardano network and protocols, ADA could face an imminent surge in demand for its native token, with an overall increase in value for the entire ecosystem, eventually positively impacting its price.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When investing, your capital is at risk.

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