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Cardano’s Unstoppable Ascent: TVL Soars to $250 Million Milestone

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In the ever-evolving landscape of decentralized finance (DeFi), Cardano (ADA) has emerged as a standout player. Not only does it adhere to a strong foundational philosophy, but it has also displayed incredible growth metrics in recent times. The total value locked (TVL) in ADA recently soared past an impressive milestone of $250 million, solidifying its position as one of the most rapidly expanding networks in the DeFi arena.

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Source: DefiLlama

To put this achievement into perspective, let’s compare ADA’s growth trajectory to another significant player, Ergo. As of late October 2023, Ergo’s TVL registers at approximately $7.16 million. While Ergo undoubtedly has its merits and has exhibited consistent growth over the past year, it becomes apparent that Cardano’s pace of scaling is undeniably faster. The ADA TVL chart paints a compelling picture, with a steep surge, particularly in the latter half of 2023, underlining a heightened interest and influx of investment in the platform.

Cardano vs. Ergo: Metrics Reveal the Divide

It’s not just TVL that tells the story of Cardano’s success. When examining more granular metrics, we discover an ecosystem that is robust and thriving. Cardano’s stablecoins market capitalization has reached a remarkable $15.93 million, accompanied by a 24-hour trading volume of $2.82 million and a substantial 39,031 active addresses.

In stark contrast, Ergo’s stablecoins market cap stands at a comparatively modest $387,776, with a 24-hour volume of $75,936. While both networks bring their unique value propositions to the table, the numbers don’t lie—Cardano’s statistics underscore broader acceptance and adoption among DeFi enthusiasts and stakeholders.

The meteoric rise of Cardano can be attributed to various factors. The platform’s unwavering commitment to research-driven approaches, peer reviews, and an unrelenting focus on innovation make it an attractive choice for those who prioritize long-term growth and value over quick speculative gains.

In conclusion, Cardano’s journey on the DeFi landscape is one that commands attention. Its exceptional TVL growth, exemplified by the recent milestone of $250 million, and its robust ecosystem underscore its role as a prominent player in the ever-expanding world of decentralized finance. Cardano’s commitment to its core values and innovative approach has clearly paid off, and its growth trajectory suggests that it is poised for even more significant achievements in the future.

Ethereum’s Base L2 Surpasses $500 Million In TVL After Six Weeks Of Launch

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Base, a laye­r-2 scaling solution for Ethereum, has achieve­d a remarkable milestone­ by surpassing $500 million in total value locked (TVL) across various dece­ntralized finance (DeFi) protocols. This impre­ssive feat comes just six we­eks after the mainne­t launch of Base, which relies on Optimism’s OP Stack te­chnology.

According to L2Beat, an estee­med platform that monitors layer-2 performance­, Base’s TVL reached $534 million as of Se­ptember 23, 2023, accounting for 5.17% of the ove­rall L2 market share. Notably, this accomplishment is e­ven more significant considering the­ lackluster performance of Ethe­reum (ETH), Optimism (OP), and other prominent De­Fi tokens in recent months.

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Source: L2Beat

Base­ functions as an Ethereum-based L2 ne­twork with a primary goal of enabling fast, cost-effective­, and secure transactions for DeFi use­rs. Boasting support from Coinbase—one of the world’s large­st cryptocurrency exchanges—and e­ndorsed by popular DeFi protocols like Uniswap, Compound, Aave­, and Maker—Base showcases notable­ growth since its August 2023 launch.

On Septembe­r 14th alone, it processed ove­r 1.88 million transactions—a figure that outpaced all competing L2 solutions. Additionally, whe­n measuring total transactional volume within a single day of activity, Base­ surpassed Avalanche (AVAX), Optimism (OP), and Tron (TRX) according to DefiLlama—an authoritative­ blockchain data tracker.

Ethereum’s Base Outperforms Solana And Other Veteran Smart Contracts Platforms

Base has e­xperienced a rapid incre­ase in Total Value Locked (TVL), surpassing Solana (SOL), a we­ll-established smart contracts platform that has bee­n hailed as an Ethereum compe­titor. According to DefiLlama, as of Septembe­r 23, 2023, Solana’s TVL stood at $310.43 million, slightly lower than Base’s impressive­ $370.29 million.

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Source: Defillama

One of the key factors attributing to Base­’s success is its compatibility with Ethereum, which re­mains the dominant platform for DeFi applications. With Base, use­rs can seamlessly interact with the­ir favorite DeFi protocols without the ne­ed to switch blockchains or compromise on security.

Notably, Base­ stands out among other Layer 2 (L2) platforms by leve­raging Optimism’s OP Stack technology based on optimistic rollups, ensuring scalability and inte­roperability. Base is currently the undisputed leader among L2 platforms launched within the past two years, ahead of only Optimism and Arbitrum.

Base does face some­ challenges. The te­am hasn’t announced any immediate plans for launching a gove­rnance token, potentially limiting community e­ngagement and innovation. While not ruling out this possibility e­ntirely, Coinbase’s Chief Le­gal Officer Paul Grewal did not provide spe­cifics either.

Additionally, users must e­xercise caution regarding scamme­rs who offer fake BASE tokens through unauthorize­d airdrops or reward programs—a ploy used to steal use­rs’ cryptocurrencies. It is esse­ntial to note that Base does not posse­ss an official token nor endorse such de­ceptive scheme­s.

Related Reading | Coinbase Surpasses Satoshi Nakamoto As The Biggest Bitcoin Owner: Arkham Intel

Cardano’s DeFi Flourishes, TVL Peaks Over 600M

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Cardano’s progress within the decentralized ecosystem has been experiencing rapid and remarkable expansion. Notably, when observing the Total Value Locked (TVL) metric in the context of Decentralized Finance (DeFi), the metric has surged to an unprecedented peak of 616 million ADA tokens, equating to a value of nearly $178 million.

Renowned cryptocurrency analyst and prominent YouTuber Dan Gambardello conveyed this significant development, suggesting that this occurrence could potentially be regarded as one of the most promising indicators of positive market trends in the entire cryptocurrency sphere.

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Cardano's DeFi Flourishes, TVL Peaks Over 600M 5

Despite being positioned 13th on DefiLlama, it’s steadily rising among the ranks of Total Value Locked in comparison to other chains, rising an impressive 9.43% surge within a span of 30 days.

Overall, Cardano’s DeFi ecosystem comprises 24 protocols, showcasing the platform’s comprehensive presence in the domain. First in the rank is Minswap [MIN], a Decentralized Exchange [DEX] that boasts a remarkable 160.29 million ADA [equivalent to $47.86 million] in Total Value Locked. This constitutes a substantial 26.65% of the overall locked assets.

Following closely are Indigo [INDY] and Liqwid [LQ] at the second and third positions. Both protocols have witnessed an impressive monthly growth of 9.45% [$40 million] and 10.05% ($20 million) in locked value, respectively.

In terms of market trends, Cardano, like several other leading cryptocurrencies, faced a recent value decline due to regulatory actions by the U.S. Securities and Exchange Commission [SEC] targeting platforms like Binance and Coinbase [NASDAQ: COIN].

Cardano’s Notable Network Activity

However, Cardano’s ecosystem has attracted the attention of sharks and whales, evident in the surge of ADA accumulation, reaching its highest level since September 2022. Remarkably, holders owning between 100,000 and $10 million worth of ADA tokens have collectively added over $116 million following the peak on May 21.

Simultaneously, Cardano has witnessed remarkable growth in transaction volume. With each passing week over the last six months, transaction volume has exhibited exponential growth, closely shadowing the rising price that’s approaching the $0.30 mark. A spectacular feat, over 67 billion ADA was transacted in consecutive weeks, reminiscent of levels last seen in September 2021, TronWeekly reported the other day.

Ethereum DeFi Landscape Makes A Promising Recovery

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DeFi on Ethereum has been left in the cold after a disastrous 2022. Due to the rapidity with which the emerging field of decentralized finance overtook the market, the third quarter of 2020 came to be known as “DeFi Summer” in the crypto sphere.

Three summers later, it was safe to establish that the glory of bygone days was nonexistent in the 2023 version. From a high of around $180 billion in November 2021 to the current $40 billion, the emerging financial paradigm has lost its sheen with a decrease of almost 78%.

But things seem to be changing for the better, as a recent analysis of Ethereum’s Total Value Locked [TVL] suggests signs of improvement. The TVL has risen to $41.5 billion from a low of $40.09 billion last week, according to data from IntotheBlock. This demonstrates the resilience and potential of the ecosystem, reflecting renewed interest and activity.

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Ethereum DeFi Landscape Makes A Promising Recovery 7

According to leading analytics firm Glassnode, two coins from the Ethereum ecosystem are paving the way for a new rebound in decentralized finance. The stablecoin governance token Maker [MKR] and the native coin of the smart contract DeFi protocol Compound [COMP] stand out as the two tokens that serve as the driving force of the trend.

However, Glassnode credits the assets’ excellent success to recent fundamental changes in the two crypto projects rather than general market pressures.

Ethereum DeFi Primary Drivers- COMP, MKR

For instance, Robert Leshner, the departing CEO of Compound, announced on June 28 that the company would be launching a new initiative that will bring regulated finance to blockchain networks. The COMP token quickly increased by almost 80% in just one week after that.

At about the same time, MakerDAO launched its Smart Burn Engine, a program for buying back MKR that offered the possibility of selling $7 million worth of MKR in a single month. The token’s price rose as a result of the debut, rising 43% week over week.

Furthermore, Messari’s research has shown a rise in market share for decentralized exchanges [DEXes] compared to their centralized competitors.

By examining the DEX vs. CEX exchange flows for the top eight DeFi tokens, we can see a renewed interest in DEX activity. The relative share of volume traded on DEXs has increased from 3.75% at the beginning of June to 29.2% today, close to the highs seen during the second half of 2022.

Lido Now Ranked With the Highest TVL in DeFi

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Protocol for liquid staking Lido Finance appears to have benefited the most from the September Ethereum merge, with its total value locked (TVL) now ranking first along with several other decentralized finance (DeFi) protocols.

In comparison to MakerDAO’s $5.89 billion and AAVE’s $3.7 billion in TVL, Lido’s liquid staking protocol currently commands $5.9 billion in TVL, according to data from DeFiLlama.

Lido reigns in TVL

As of January 2, $5.8 billion worth of ether was staked, according to its website. Around $23.2 million was bet on Solana, $43.9 million on Polygon MATIC, $11 million on Polkadot, and $2.2 million on Kusama at the same time.

Users can access liquid Ether staking with Lido’s model without committing to the customary 32 ETH minimum.

Since Ethereum switched to proof-of-stake, staking solutions like these have been in high demand, according to blockchain data analytics from Nansen in December.

The Merge’s introduction of staked ETH as a yield-bearing instrument that is completely native to cryptocurrencies was highlighted in its report, and it has since outperformed other collateralized yield-bearing services.

Due to the fact that Lido sends received ether to the staking protocol, its fee revenue has been directly proportional to Ethereum Proof-of-stake (PoS) earnings.

In November 2022, Lido claimed that since October 2022, it has been bringing in $1 million per day in fees.

According to a Messari statement in September 2022, the MakerDAO, which oversees the Maker protocol, saw its revenue fall to just over $4 million in Q3, an 86% decrease from the previous quarter. The decline was attributed to a lack of liquidations and weak loan demand.

According to Nansen in September, Lido held 31% of the ETH that was staked among DeFi during that same month, which is a significant amount when compared to major cryptocurrency exchanges Coinbase and Kraken, which each held 15% and 8.5%.

Solana’s DeFi Ecosystem Bearing Brunt Of The FTX Contagion

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Solana’s Total Value Locked has shrunk in the backdrop of FTX contagion. TVL is a metric that highlights the total coins deposited across DeFi protocols, including staking, lending, and liquidity pools. 

Data from DeFiLlama showed that SOL’s TVL tanked over 33% at the time of writing, to $417 million, a significant decline from the previous peak of $10 billion reached on November 9, 2021.

Of all the SOL’s protocols, DeFi platform Solend has lost nearly its entire worth. Its current TVL stands at $44.83 million, down by over 60% in the last 24 hours. Similarly, Radium and Lido’s TVL have too fallen by 35% and 47% over the day and are currently hovering at $62 million and $49 million respectively.

The largest among them, Liquid staking protocol Marinade Finance, too witnessed its TVL on the chain, fall to 37% to rest at $107 million in the past 24 hours.

The other day Solana’s native SOL coin lose its value in the early hours of 9 Nov, leaving lending firm Solend to close out a sizable account that went underwater. SOL’s price depreciated by 65% in less than a week and is trading at $14 at press time.

At first, Solend attributed the failure to liquidate to network slack. Later investigation revealed that the problem was a lack of on-chain SOL liquidity, which the protocol has attempted to address by raising the interest rate on SOL to over 2,500% in an effort to attract deposits and motivate borrowers to repay their loans.

Panic Among Solana Investors Amidst FTX FUD

As investors hurried to sell their stakes, more than $800 million worth of SOL is expected to be unstaked early on Wednesday, data from solanacompass.com revealed.

SOL started to decline shortly after Binance CEO Changpeng Zhao declared that the largest cryptocurrency exchange in the world would sell $500 million in FTT, a token created by a rival FTX, as a result of recent “revelations,”

FTT holders rushed to exit their positions by selling the token aggressively out of concern that the Binance sale would cause its price to soar, leading to the exact freefall they had anticipated.

As Solana began its descent, leading on-chain experts speculated that FTX and Alameda were liquidating their SOL holdings to raise cash to support FTT.

The CoinDesk article stated that as of June 30, Alameda held around $1 billion in SOL. 10% of Solana’s market capitalization at the time was represented by it.

Cardano’s New Vasil “Capabilities” Will Become Available On Sept 27

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Cardano’s long-awaited Vasil Update is now only a few hours away which promises to enhance smart contract capabilities, increase the chain’s throughput and reduce costs. In its most recent tweet, the blockchain R&D company IOHK described what to anticipate after the hard fork.

Vasil is a component of the third development cycle for Cardano. The fork is named after notable Cardano community member and Bulgarian mathematician Vasil Dabov.

Interestingly the update arrives in the month of ADA’s fifth anniversary which it claims would significantly improve the PoS network’s capabilities.

First, the blog talks about the native smart contract language called Plutus. As the core component of Cardano, Plutus is tasked to segregate the on-chain transaction validation from the off-chain code that powers smart contracts. This off-chain code runs on a user’s computer.

The new Plutus v2 features will be accessible one epoch following the hard fork on Thursday, which is anticipated to take place on September 27, the thread read.

Other enhancements post-Vasil will include “diffusion pipelining,” a technique that scales up block propagation times leading to higher throughput. The goal of this upgrade is to ensure that blocks can be shared [propagated] in the network within five seconds after their creation.

According to the blog post, this scaling enhancement will speed up the process of communicating information about newly formed blocks among network participants. It also provides more space for block size and together with Plutus script improvements, creates a more scalable setting overall.

Cardano’s DeFi TVL Grew By A Whopping 565,000%

Data from DeFi data tracker DefiLlama suggested that Aada Finance, a noncustodial lending protocol on the Cardano mainnet, recently tapped a staggering growth in Total Value Locked [TVL]. As per reports, Aada Finance recorded a growth of 565,873% over the past week.

After months of open testnet use, Aada Finance, a groundbreaking platform that enables lending and borrowing of native Cardano assets, went live on the mainnet exactly a week ago, on September 13.

The lending platform asserts that the pre-Vasil hard fork sentiment exactly matches the debut of the V1 protocol, which is why it decided to do so before the much-awaited upgrade.

TRON Became Top 3 Public Chain With Over $5 Trillion TVL

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TRON tapped a new milestone as its Total Value locked [TVL] figure exceeded $5 trillion, data from TRONSCAN revealed. Thus becoming the second largest public chain by stablecoin market cap and in the Top 3 largest public chains by TVL count.

The findings also revealed that the blockchain has currently a total of 105 million new users and that its network has processed over 3.6 billion transactions. The growth has been attributed to several developments undertaken by the TRON team.

One however stood out, and that is its partnership with WeFund, a multichain community crowdfunding incubator for blockchain and real-world projects, that intends to attract more users to the DApp market and provide use cases for TRON-based payments.

With respect to 24-hour international trade volume, the Tron network is a leading Proof-of-Stake [PoS] blockchain network. In addition to that, the native coin of the blockchain TRX is presently ranked 16th all-in-all.

At the time of publication of this article, TRX’s value is exchanging hands at $0.068, which is over 7 percent higher than the trade price in the weekly index.

The asset’s market cap stood at $6 billion.

TRON Backed Exchange Announced A Crucial Update

In other news, Poloniex, one of the oldest cryptocurrency exchanges globally, recently revealed the details of its key upgrade. Its engineers advanced its system’s order matching speed and TPS.

H.E. Justin Sun who is the founder of Tron as well as the Chief Executive Officer of BitTorrent [BTT], has been an instrumental figure behind the Poloniex exchange,

Throwing his weight behind the latest announcement, Sun said the upgrade will open up new exciting opportunities.

The launch of this new trading system is a landmark step forward for Poloniex as a world-class international exchange. It demonstrates our commitment to delivering benefits and the best services for our users. As one of the world’s oldest crypto exchanges, Poloniex has made impressive strides in optimizing its system and will continue to bring an incredible trading experience to retail and professional traders.

According to Poloniex’s team, this upgrade would provide the necessary tools to support experienced traders, retail market makers, and institutions.

Cardano has 517 projects locked in with NFT accounting for the largest share

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Cardano’s ecosystem continues to grow by leaps and bounds. A Twitter user by the pseudonym TTS17 shared a LinkedIn post by Tim Harrison, creator of the blockchain, showing the number of projects building on ADA. The data which is in the form of a pie diagram indicated that there are 517 projects being currently deployed on Cardano as of March 11.

Of that, NFT collections occupied the major chunk of the pie comprising 34.7% of ADA’s projects. This was followed by Decentralized exchanges or DEX and the gaming sector hitting second and third positions. Recently the proof-of-stake [PoS] blockchain achieved a new record of the number of NFTs minted on Cardano crossing a staggering 800,000.

Of late, a number of significant milestones have been registered on the network, as development on the blockchain has received a further boost from the recent Alonzo upgrade in September 2021.

The upgrade has brought smart contract capabilities, which enabled the network to grow and operate at a much faster rate than it had previously been able to. In reference to that, Cardano founder Charles Hoskinson called it the most “significant change in the history of the protocol.”

Whales accumulation in Cardano network hit ATH

As per data from the blockchain analysis firm, IntoTheBlock showed that wallet addresses with 1 million to 10 million coins rose to an all-time high of 12 billion ADA [$9.72 billion] last week. Notably, this was an impressive 41 percent jump since January,

The accumulation by these large-cap investors hints at a possible bull run for ADA’s price action. In September, before the downtrend, whales were on a dumping spree leading to a significant sell-off, which eventually acted as an advance indicator of the upcoming price fall in the asset price movement.

Another significant development was from DefiLama, a site that tracks DeFi data, which showed the total value locked [TVL] in the Cardano network increased by $50 million in just 7 days, reaching a record high of $160.79 million. Data also suggested that roughly 70 percent of the funds are locked in SundaeSwap, reflecting supporting the growing popularity of the decentralized exchange.

Fantom [FTM] crosses $12B to become the 3rd largest in DeFi TVL

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Fantom [FTM] has toppled Binance Smart Chain [BSC] to become the third-largest blockchain in decentralized finance or DeFi, in total value, locked [TVL], as per data provided by analytics platform DeFiLlama. The news assumes significance as the broader crypto market is currently engulfed by bearish sentiment. At the time of writing, FTM’s TVL has risen by more than an impressive 60% over the past week to reach $12.41 billion.

For the record, Fantom is an open-source smart contract blockchain that now hosts 6.15% of about US$200 billion of DeFi activities. Interestingly, Binance Smart Chain used to command over 20% of TVL last May riding on the popularity of decentralized exchange [DEX] PancakeSwap but has now retraced to 6.05%.

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Meanwhile, on the price front, Fantom’s native token FTM had mirrored much of this growth over the past month but has also succumbed to the recent market-wide sell-off, losing more than 35% over the weekend to trade at $2.10 at the time of publishing this news, as per data obtained from CoinMarketCap.

With respect to the performance of the overall market, all other major blockchains, such as TVL king Ethereum [ETH] and even second in command Terra [LUNA], witnessed double-digit falls over the span of just seven days. In fact, market leader Ethereum’s total value locked count has dropped by nearly 20% over the same time frame to a four-month low of US$116.5 billion, decreasing to a record low at 58%, from 94% last January.

Fantom [FTM] now the preferred DeFi choice ?

Transactions generating on Fantom have surged tremendously surpassing that of Avalanche [AVAX] a week ago. More than 1 million transactions were processed on the FTM network on 19 January 2022 even though Avalanche locked up more value than FTM on DeFi applications at $11 billion compared to $6 billion and hosted 127 DeFi protocols versus Fantom’s 112.

As a matter of fact, Interest in Fantom grew significantly over the past week as Daniele Sestagalli and Andre Cronje – developers who are well known for launching protocols on AVAX announced working on an upcoming project that will deploy on the blockchain. Analysts at Delphi Digital noted,

As the narrative rotates from Avalanche to Fantom, it’s not surprising to see it reflected in transactions. Opportunistic capital moved over to yield farm on Fantom with high yields on stablecoins of around 30-60% APR [annual percentage rate].