Cardano (ADA), the blockchain platform known for its innovative approach to decentralized finance (DeFi), has been making significant strides in recent months.
The Cardano DeFi ecosystem is approaching a total value locked (TVL) of 400 million ADA, the native cryptocurrency of the Cardano network. The current TVL stands at 398.55 million ADA, while the TVL in USD is currently at $148.55 million, according to data obtained by Finbold from DeFiLlama on May 19.
It is also worth noting that the total ADA locked briefly exceeded 400 million ADA on May 14 but retraced shortly after. Meanwhile, other sources indicate that Cardano has once already surpassed the milestone of 400 million ADA in total value locked around the time of publication.
JUST IN: Cardano $ADA DeFi surpasses 400 million ADA in total value locked.
— Adaverse News | Cardano and Ergo News (@AdaverseNews) May 19, 2023
What is total value locked?
Total value locked refers to the amount of cryptocurrency locked in smart contracts within the DeFi ecosystem. It serves as a measure of the overall activity and liquidity within the system. Cardano’s impressive TVL of 400 million ADA demonstrates the growing confidence and interest in the platform’s DeFi offerings.
One of the factors contributing to Cardano’s success in the DeFi space is its unique approach to scalability and sustainability. Cardano utilizes a proof-of-stake (PoS) consensus mechanism, which enables faster transaction processing and significantly reduces energy consumption compared to traditional proof-of-work systems.
Additionally, Cardano’s emphasis on security has garnered attention from both developers and users, with the platform’s rigorous approach to code correctness and auditing ensuring a higher level of reliability and trustworthiness for DeFi applications built on Cardano.
Cardano smart contracts
As Cardano continues to evolve and expand its ecosystem, the future looks promising for its DeFi initiatives. With ongoing developments, such as the introduction of smart contracts through the September 2021 Alonzo upgrade and later the Vasil hard fork upgrade, Cardano continues to experience ongoing developments.
On May 18, Finbold reported that the seventh-largest cryptocurrency by market capitalization has made an impressive stride in the blockchain space adding over 1,000 Plutus V1 smart contracts to its network since the beginning of 2023.
Another noteworthy development that has contributed to Cardano’s success is the integration of Plutus V1 into Plutus V2. By incorporating all of the built-in types and functions from Plutus V1 into Plutus V2, Cardano has enhanced its capabilities and expanded the range of possibilities for developers.
Finally, Cardano is currently trading at $0.3707, reflecting a decrease of 1.98% within the day and a decline of 1.80% over the week. The total market capitalization of Cardano stands at $12.9 billion.
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