Cardano’s Total Value Locked Surges from $0 to Over $220 Million in 4 Months.
While many investors are more concerned about the price of ADA, the native cryptocurrency of Cardano, the total value locked (TVL) on the network has recorded tremendous growth since the beginning of the year.
Cardano’s TVL had recorded a slow start this year, starting around zero in the first two days of 2022. Interestingly, on the third day, the total value locked began to increase slowly before finally picking up steam on January 20, 2022.
Cardano’s TVL
Since then, Cardano’s TVL has not slowed down, surpassing a quarter of a billion on several occasions. At the time of writing, Cardano’s TVL is worth $228.55 million, according to data on DeFiLlama, with several enthusiasts anticipating that the volume will surge when more decentralized exchanges make their debut on the blockchain.
It is worth noting that Cardano’s TVL had surged as high as $326 million on March 24, 2022, but as the eighth-largest cryptocurrency by market capitalization suffered a massive dip in price, the network’s total value locked was also affected, thus bringing it down to $228.55 million.
Lark Davis, CEO, and owner of The Crypto Lark with 950K followers said:
“cardano total value locked has gone from basically zero at the start of the year to a quarter billion. Still far behind other chains, but nevertheless impressive growth for 4 months!”
#cardano total value locked has gone from basically zero at the start of the year to a quarter billion. Still far behind other chains, but nevertheless impressive growth for 4 months! pic.twitter.com/ZdDPWeHLrg
— Lark Davis (@TheCryptoLark) April 14, 2022
He further said that even though ADA has a $255M locked in defi and a $30B market cap but still Cardano is highly undervalued.
$rose market cap 850 million, with 255 million total value locked in defi. #cardano market cap 31 billion, with 240 million total value locked.
I feel like one of these coins is BIG time undervalued!
— Lark Davis (@TheCryptoLark) April 14, 2022
Cardano’s TVL Will Soar When More DEXes Launch
Recall that since Cardano enabled smart contract functionality, only ten decentralized exchanges have been successfully launched on the network’s mainnet.
The $228 million TVL on Cardano is contributed mainly by three DEXes namely Minswap, Sundaeswap, and WingRiders.
Charles Hoskinson, the CEO of Input Output Global (IOG), the firm responsible for Cardano research, is confident that more decentralized exchanges will be deployed on the network after the Vasil hardfork, an upgrade tipped to introduce significant features to the blockchain.
With more DEXes expected to go live in June 2022 when the Vasil hard fork is deployed, Cardano’s TVL will definitely surge tremendously.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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