Cardano's TVL has rapidly risen, indicating bullish sentiment surrounding ADA.
Cardano is a well-known proof of stake (POS) blockchain that necessitates users to stake their native tokens, ADA, to validate and safeguard transactions on the network. The blockchain has consistently held the record for the highest percentage of its token supply staked. Recently, it has reached a new milestone in terms of the total amount of ADA staked in decentralized finance (DeFi) protocols, further solidifying its position in the industry.
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Cardano's TVL has rapidly risen, indicating bullish sentiment surrounding ADA. Cardano Token TVL Reaches New All-Time High
In September 2021, Cardano completed the Alonzo hard fork upgrade, which allowed developers to build decentralized applications on the blockchain, bringing the DeFi sector to Cardano. Since then, there has been a steady increase in the number of DeFi protocols on the blockchain, leading to a rise in the number of staked ADA. Despite some dips, such as during the crypto winter of 2022, the tide has turned in 2023, and the total number of ADA staked on the network reached a new high of 560.7 million on Tuesday, July 4, according to data from DeFiLlama. Cardano's TVL has rapidly risen, indicating bullish sentiment surrounding ADA.
Although the number of ADA staked has reached a new milestone, the total valued locked (TVL) in dollar terms has not yet caught up. According to DeFiLlama, the current dollar equivalent of $161.82 million is still 50% lower than its all-time high of $316.36 million in March 2022.
How Will ADA Price Respond?
ADA's price has closely followed Bitcoin's movement in the crypto market. Despite reaching a new all-time high in Cardano TVL, the digital asset has experienced a decline in value over the last day. This suggests that it is currently isolated from the positive effects of the TVL milestone, but may experience a bullish movement in the future as DeFi interest in the blockchain continues to grow. Currently, ADA is trading at $0.28, which is a 3.30% decline in the last 24 hours. However, it has still seen gains of around 5% on the 7-day chart. If the general market rallies again, ADA is likely to retest the $0.3 resistance.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.