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ADA Soars 50% in Single Week as Total Value Locked Jumps
- The recent surge in Cardano’s value is attributed to a significant increase in Total Value Locked in its dapps.
- One example is Lenfi, a lending protocol on Cardano, which has grown substantially, indicating more ADA tokens are being held and potentially driving price increases.
- Continuous development on the Cardano blockchain, including updates in smart contracts and scaling projects like Hydra and Mithril, indicates steady progress and likely influences positive price performance.
Cardano’s ADA has surged over the past week, increasing by almost 50% according to data from CoinMarketCap. The price of ADA is currently US $0.59 (AU $0.89).
All-Time High for Total Value Locked
The recent rise in Cardano’s price can be largely attributed to the unprecedented increase in the Total Value Locked (TVL) in its decentralised applications (dapps). Notably, Lenfi, a lending and borrowing protocol on the Cardano blockchain, has seen a substantial increase in its ADA reserves. Lenfi is a relatively new DeFi protocol on the Cardano blockchain, offering a decentralised lending and borrowing platform with a unique NFT bond feature for trading loans, alongside multi-asset peer-to-peer transactions and opportunities to earn interest.
Lenfi is currently the 9th largest protocol on the Cardano network, but is making impressive gains, with 118% growth in the past month. This growth in TVL implies that more ADA tokens are being held in these dapps and not actively circulated, which could lead to a price increase if the demand for ADA remains strong.
Cardano Development Continues at Steady Pace
Further development on the Cardano blockchain hints at overall progress, which is likely contributing to the positive price performance. According to the development report on Cardano Essential in the Smart Contracts area, the Plutus tools team worked on integrating Marconi’s indexing conformance into a Cardano node and released the Marlowe TS-SDK beta. They also published a payouts DApp prototype and worked on various improvements and fixes.
In Scaling, there has been a monthly review meeting with demonstrations from projects such as Hydra and Mithril. The Hydra team released version 0.14.0, focusing on test reliability and system robustness. The Mithril team made progress in adapting their client library for WASM compilation and optimised the aggregator’s performance.
In the Voltaire section, dedicated committees are actively working on key areas such as governance, community inclusivity, protocol parameters, and open-source initiatives, marking a significant step in Cardano’s roadmap. Voltaire is the final phase in the road map.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
