Cardano Sees 198% Growth in TVL: What’s Driving the Boom?
• Cardano (ADA) has seen its total value locked (TVL) explode nearly 200% since the beginning of the year, according to crypto analytics firm Messari.
• The development of infrastructure such as new stablecoins, wallets and other protocols have been helping Cardano developers create more sophisticated applications with improved UXs.
• In June, the U.S. Securities and Exchange Commission (SEC) charged Coinbase for allegedly offering unregistered securities, specifically naming ADA in the lawsuit.
Cardano Witnesses 198% Growth in Total Value Locked This Year
Crypto analytics firm Messari reports that Ethereum (ETH) rival Cardano (ADA) has seen its total value locked (TVL) explode nearly 200% since the beginning of the year. TVL refers to the amount of capital deposited within a protocol’s smart contracts and is often used to gauge the health of a crypto ecosystem. The development allowed Cardano to move up from 34th position to 21st in overall TVL among all chains.
Development Within Ecosystem Accelerating
Messari says that new infrastructure such as stablecoins, programming languages, and wallets are helping Cardano developers create more sophisticated applications with improved UXs. During Q2, Cardano’s ecosystem grew 49% QoQ in DApp transactions and 10% QoQ in TVL (USD). Multi-chain solutions such as Hydra Head and Milkomeda C1 sidechain are continuing to mature and aim to support future activity increases from DeFi or gaming. Development on various other sidechains and L2s signifies Cardano’s multi-chain vision for the future even as usage on base layer continues to experience growth.
US SEC Charges Coinbase Over Unregistered Securities
In June however, things took a turn when US SEC charged Coinbase for allegedly offering unregistered securities, specifically naming ADA in the lawsuit. This put sell pressure on ADA which caused liquidations on Cardano-based decentralized finance (DeFi) platforms resulting in a dip in TVL numbers for June month only but since then it has picked up again rapidly continuing its impressive growth trend this year despite price decline of ADA token itself.
Conclusion
Overall it’s been an impressive journey so far this year for Cardano with its total value locked growing nearly 200%, despite facing some regulatory hurdles recently due to US SEC charging Coinbase over unregistered securities allegations involving ADA token itself as well as bear market conditions causing price decline for most altcoins including ADA also impacting TVL figures temporarily during June month only before it started picking up again rapidly once again this year showcasing resilience of underlying ecosystem built by Cardano team so far this year despite challenging market conditions overall this year so far at least when it comes to price action but not necessarily when it comes to metrics like Total Value Locked which indicates underlying strength/health/resilience of any given blockchain project which appears solid & strong at least when it comes to ongoing development work/innovations going on behind scenes involving building out further infrastructures/protocols etc driving further adoption & utility case for any given blockchain projects like Cardano so far this year..
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