Cardano’s DeFi ecosystem is seeing significant growth, with the total value of locked assets recently hitting a new all-time high (ATH) in ADA.
As the crypto market continues its recovery, the Cardano ecosystem has emerged as one of the biggest beneficiaries. On-chain metrics show that DeFi protocols built on the Cardano network have attracted more capital, with the total value of locked (TVL) assets steadily growing.
According to data from DeFiLlama, the Cardano network has a TVL of $216 million. This amount represents a new all-time high in ADA, meaning there are now nearly 700 million ADA tokens across Cardano-based DeFi protocols.
The new Cardano TVL all-time high builds on an impressive third quarter that saw the network become the 15th largest blockchain in DeFi activity. At the end of the third quarter, Cardano had a TVL of $150.6 million, meaning that over $60 million has been added since the start of October.
As previously reported by The Crypto Basic, Cardano’s surge in TVL is partially a result of increased usage of stablecoins on the network. It is unsurprising then that leading Cardano stablecoin DJED also marked a new milestone on the eve of the network’s TVL surging to a new all-time high.
DJED Stablecoin Now Over 390 % Collateralized
Launched in February, DJED stablecoin has become a popular choice in the growing Cardano DeFi ecosystem. The token has a circulating market cap of $3.3 million and has maintained relative stability over time, trading at around $1.01.
On Wednesday, COTI Network, the team that partnered with Cardano’s Input Output Global (IOG) to issue DJED, announced a new milestone. The stablecoin now had a collateralization ratio above 400%, although the ratio has dropped to 390% at press time.
Djed's reserve ratio has surged to over 400%, giving users the opportunity to mint and burn both $DJED and $SHEN.
Djed is now overcollateralized by more than 4X!
Visit https://t.co/vFuVvG0p6H$COTI $ADA pic.twitter.com/ki7MieP7di
— COTI (@COTInetwork) November 2, 2023
The increased reserve ratio means users can safely mint and redeem DJED on the Cardano chain. Additionally, it shows that COTI maintains a sufficient reserve of SHEN tokens, which serves as the reserve token for DJED. With such high collateralization, users can confidently use DJED, further bolstering an already thriving Cardano ecosystem.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
