Cardano TVL surging
Cardano’s TVL is growing exponentially in the recent weeks.
Such a sentence would have been unthinkable in 2021, mostly because there was no place to lock your capital on Cardano. However, following the Alonzo upgrade that made smart contracts available on Cardano, decentralised exchanges started poppoing up on Cardano. As a consequence, money started pouring into the ecosystem and pour in it did.
The Cardano TVL surged from $2.2 million AUD to an impressive $240 million AUD in little under three months. Charles Hoskinson, Cardano’s talismanic founder and chief advocate, said the best is yet to come. He believes that even more explosive growth in TVL is around the corner, considering that Cardano readies for its next upgrade in June.
The so-called Vasil hard fork will see the Cardano blockchain apply a further upgrade to its scalability. As a result, yield-starved crypto investors could be banging down Cardano’s proverbial door to invest in fresh DeFi products. Hoskinson said:
“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.”
Where the money is flowing on Cardano
According to DeFiLlama, a crypto analytics website, most of the investments are flowing into Cardano’s number one decentralised exchange SundaeSwap and its DeFi banking protocol Meld. SundaeSwap accumulated over $140 million AUD at the time of writing, and Meld sits at just under $100 million AUD.
Cardano also has several other DeFi protocols that are ready launch. Ardana, Aada, Liquid, Djed, and Cardano Maladex are all money market and stablecoin protocols that will satisfy investors’ hunger for fresh DeFi yields and new projects in the space.
ADA could be headed higher
With Cardano doubling rewards for white hat hackers and developers continuing to work on its ecosystem, the future seems bright for ADA.
While some forecast the price of ADA to come close to $3 AUD in 2022, others even called for ADA to follow the vertical path of Cardano TVL. $5 is as high as price targets go, although that would be subject to a major reversal in the overall market dynamic. With Bitcoin sitting comfortably at $50,000 AUD, upside movement of ADA is possible, but the stars have to align for ADA to explode to $5 AUD.
One possibility would be a major narrative shift for Cardano. Still somewhat stigmatised for being a “all talk, no action” blockchain, recent developments have put Cardano critics on the backfoot. In fact, Cardano started overdelivering instead of underdelivering, the market just has not caught on to the fact yet. With the upcoming hard forks in 2022, Cardano fundamentals look well-positioned for price to break to the upside.
Now, Cardano only has to convince the doubters that this time really is different.
