- Cardano’s TVL crossed $700M, with $1B as the next target.
- Will the strong network growth push ADA’s value higher?
As an analyst with over a decade of experience in the crypto markets, I have seen my fair share of bull runs and bear markets. The recent surge in Cardano’s TVL and network growth has caught my attention, and I believe ADA is poised for further gains.
Cardano’s ADA experienced a significant surge in November, fueled by robust fundamentals and growing trust, resulting in unprecedented total value locked (TVL) reaching an all-time peak of $713 million.
This was a massive recovery from the nearly $500M hit in the last cycle.
Cardano TVL soars
For those unaware, TVL (Total Value Locked) measures the amount of money tied up within a blockchain, with a focus on decentralized finance (DeFi) applications on the Cardano network. An increase in TVL suggests that investors have greater confidence in these platforms.
As reported by DeFiLlama, the leading Cardano protocols contributing to Total Value Locked (TVL) were primarily two lending platforms, Liqwid and Indigo, along with a decentralized exchange (DEX), Minswap. These three platforms collectively held more than half of the TVL ($430M) at the time of publication.
The network growth was also evident as DEX (decentralized exchange) volume jumped to yearly highs.
Initially, the trading volume on Cardano’s DEX stood at around $1.9 million in early November. However, it has significantly increased and now stands at approximately $31.5 million as of today, marking an impressive 17-fold increase within a single month.
In the last month, a surge in trading volume on decentralized exchange platforms for DEX has led to an uptick in user engagement. Interestingly, this heightened activity appears to have coincided with robust price movements in Cardano (ADA).
Significantly, user numbers have grown from approximately 30,000 in early November to around 90,000 at present, representing a doubling or 100% increase. Regarding pricing, ADA experienced a substantial jump of 272% over this period, reaching a peak of $1.3, marking its highest point for the year.
ADA price action
In other words, if the increasing trading volumes on decentralized exchanges and ongoing network expansion persist in the coming weeks or months, Cardano (ADA) might aim to reach its 2021 peak price of $3.
If ADA manages to maintain its value above $1 and establishes a distinct peak around $1.5, similar to its previous cycle, then there’s a possibility that it could reach its 2021 highs on the price charts.
In simpler terms, the sudden surge in the altcoin’s value has confined it to a price band of around $1 to $1.5, which was established in 2021. Cardano (ADA) maintained this level for approximately three months before eventually breaking out and reaching $3.
Read Cardano [ADA] Price Prediction 2024-2025
If the pattern repeats, ADA price could fluctuate between $1 and $1.5 for the next few weeks.
To summarize, the surge in ADA’s price isn’t solely due to market fear of missing out (FOMO); instead, robust underlying factors have contributed significantly as well.
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2024-12-05 03:19