One of Cardano’s decentralized finance (DeFi) platforms is having an impressive rally in the amount of Total Value Locked (TVL) on the platform in the past 30 days.
According to data on DefiLlama, the Total Value Locked on FluidTokens, a decentralized finance lending platform, has soared above 54,000% in the past month.
FluidTokens has recorded a growth of 54,638% in TVL, representing a total of $23,707. Aside from the monthly surge, FluidTokens also saw an increase of 16.42% in the last seven days, DefiLlama data shows.
FluidTokens is a peer-to-peer lending protocol that allows borrowers to offer their Cardano-based non-fungible tokens (NFTs) as collateral to borrow ADA.
With FluidTokens, users can unlock the value of their NFTs by providing them as collateral for ADA loans. The lender will be required to go through the loan offerings on the FluidTokens marketplace and fund the loans considered acceptable.
The NFT that will be offered as collateral must be from an approved collection. Users will repay the borrowed cryptocurrency based on the agreement stated on the platform.
Cardano’s TVL Records Slight Spike
Meanwhile, the Total Value Locked across various decentralized applications on the Cardano network is also experiencing a slight increase in the past day.
In the last 24 hours, the TVL on Cardano’s DeFi platforms have also soared 1.66%. At the moment, Cardano has a TVL of $111.37 million across eight decentralized finance applications.
WingRiders is ranked as the largest DeFi protocol on Cardano in terms of Total Value Locked. Per data on DefiLlama, WingRiders has $44.86 million in TVL, representing a 43.87% market dominance.
Cardano Founder: More DEXes to Launch Soon
Since smart contract functionality was enabled on Cardano, only a handful of DeFi protocols have gone live on the network. DefiLlama currently tracks 12 decentralized protocols on the Cardano blockchain, with only eight active.
The fact that there are only a few DeFi protocols on Cardano also affected the network’s TVL, which previously soared above $300 million earlier this year.
However, Charles Hoskinson, the founder of Cardano, expressed confidence that the network’s TVL will soar when more decentralized applications go live after Vasil’s mainnet launch.