Cardano, the blockchain platform, is making headlines in the cryptocurrency world. Despite the current downtrend in the market sentiment, Cardano’s Total Value Locked (TVL) in its native currency has skyrocketed to an all-time high.
This remarkable achievement is even more impressive, considering that other Layer 1 blockchain are witnessing a decline in their TVL. What sets Cardano apart is that this milestone has been reached entirely through organic growth without resorting to any venture capital liquidity tactics.
Cardano’s Built-In Feature Worth Billions
The news broke when Sooraj, a fervent supporter of blockchain technology, shared this groundbreaking information on Twitter. The tweet instantly ignited a spirited discussion within the crypto community.
One member joined the conversation by highlighting that 50% of Ethereum’s TVL is attributable to a single liquid staking derivative product known as Lido. In contrast, Cardano has a built-in liquid staking mechanism worth billions of dollars, yet it remains unaccounted for in the TVL calculation.
Sooraj responded to this observation, regretfully explaining that the Cardano liquid staking mechanism is not currently locked, hence why it cannot be included in the TVL figures.
Another community member chimed in, drawing attention to zkSync, a layer 2 scaling solution for Ethereum, which has managed to surpass Cardano’s TVL within a mere two and a half months.
This person emphasized the rapid growth of Ethereum roll-ups as they continue to attract a significant share of developers, users, and liquidity in the market.
The comparison raised valid points about the evolving landscape of blockchain technologies, showcasing the fierce competition and constant innovations taking place within the crypto realm.
While ADA has achieved an extraordinary TVL milestone through organic means, the emergence of Ethereum roll-ups demonstrates the dynamic nature of the market and the ongoing quest for scalability and efficiency.
However, it is clear that each blockchain platform has its unique strengths and weaknesses. It remains to be seen how Cardano’s TVL will fare in the coming months and whether it can maintain its upward trajectory in the face of growing competition.