Behind the rise, fall, and rise of the TVL on Cardano (ADA) |

Behind the rise, fall, and rise of the TVL on Cardano (ADA) |

Cardano’s coin, called TVL (or T-Vault Layers) was created in October 2017 after the team took a poll on all of their social media pages. It has since become one of the most popular coins on exchanges and is currently ranked as number 4 by market cap.

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Cardano (ADA) is a cryptocurrency that has had a rough time. It was worth $1 in 2017 and then it dropped to $0.05, but now it’s back up to $1. The “cardano news” will give you the latest updates on this coin.

Behind the rise, fall, and rise of the TVL on Cardano (ADA) |

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In recent months, Cardano (ADA) has been waging a losing struggle to cement its position in the DeFi market.

The development efforts at IOHK, EMURGO, and the Cardano Foundation have escalated up since the desired Alonzo Hard Fork update in September 2021, culminating at the end of March when the blockchain achieved an all-time high in total value locked (TVL).

Cardano’s TVL hit $326 million on March 24th, roughly a 38,500 percent rise over the $845,000 in TVL it had at the start of the year.

Behind the rise, fall, and rise of the TVL on Cardano (ADA) |From January 1st, 2022, until May 31st, 2022, a graph depicting the entire value locked in Cardano is shown (Source: DeFi Llama)

This increase in the value locked in numerous blockchain-based dApps contradicted the general price trend of ADA, which has been progressively declining since its all-time high in September 2021. ADA has lost more than half of its value since the beginning of the year, falling from $1.37 on January 1st to This growth in the value locked in various dApps on the blockchain defied ADA’s overall price trend, which steadily declined since its all-time high in September 2021. Since the beginning of the year, ADA lost over half of its value, dropping from $1.37 on January 1st to $0.65 on May 31st..65 on May 31st.

Behind the rise, fall, and rise of the TVL on Cardano (ADA) |From January 1st, 2022, through May 31st, 2022, a graph depicting the price of ADA is shown (Source: ADA)

The discrepancy between growing TVL and declining price suggests that Cardano interest is unrelated to price movement.

A noticeable growth in the number of projects built on Cardano and the number of dApps released on the platform has sparked similar interest. According to IOHK, almost 900 projects, including DEXs, markets, stablecoins, lenders, wallets, and NFTs, were developing on Cardano by the end of April.

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Despite the high level of activity and interest, Cardano has been affected by the Terra fallout, and its price and TVL have fallen along with the rest of the market. However, the blockchain’s 65 percent loss in TVL over the last two weeks was considerably more dramatic than predicted, prompting the issue of what caused the rapid dip.

Liquidity is simple to come by and quick to go.

Cardano has had 94 dApps debut since the Alonzo Hard Fork in August 2021. Five decentralized exchanges (DEXs) have pushed the majority of Cardano’s TVL since the beginning of the year, out of the many DeFi protocols that use the platform.

The thriving Cardano community was fast to adopt the first trade protocols introduced on the blockchain. At the end of March, Minswap (MIN), SundaeSwap (SUNDAE), MeowSwapFi (MEOW), ADAX Pro (ADAX), and MuesliSwap (MILK) all witnessed large increases in liquidity, with record volumes and engagement.

However, the money that was poured into these processes was quickly withdrawn.

ADAX Pro was the biggest loser in this sharp drop, according to DeFi Llama, losing 97.7% of its TVL between April and May. With an 86.7 percent decrease in TVL, MuesliSwap finished in second, followed by SundaeSwap with a 79 percent decrease in TVL.

MeowSwapFi and MinSwap tied for third place with a 74 percent drop in TVL over two months, while trading protocol WingRiders (WRT) had the least drop with a 54 percent drop in TVL.

The TVL on Cardano fell from its all-time high of $326 million to $115.7 million in the closing days of May as a result of the decrease in liquidity.

A quick recovery portends a bright summer.

The volatility experienced in TVL Cardano during the last two months seems to be coming to an end. Following a decrease to $115.7 million on May 27th, the TVL climbed by 29% to $149.31 million on May 31st.

The DEXs that have suffered major losses in recent months have all started to recover, with each one’s TVLs increasing in the final week of May.

Behind the rise, fall, and rise of the TVL on Cardano (ADA) |The growth in TVL for Cardano DEXs is seen in the table below (Source: DeFi Llama)

Minswap’s TVL increased by over 21% in the last seven days, accounting for over half of all the value locked in Cardano. SundaeSwap, Cardano’s second-largest DEX, had its TVL climb by just under 20% over the same time period, while WIngRiders’ TVL of $35.44 million grew by more than 12%.

This comes on the heels of Cardano’s similarly large increase in transaction volume. Between May 27th and May 31st, the transaction volume of Cardano’s native coin, ADA, surged by 30%, from $10.88 billion to $14.24 billion.

Behind the rise, fall, and rise of the TVL on Cardano (ADA) |Chart depicting the Cardano (ADA) transaction volume over the last 30 days (Source: Messari)

All of these indicators lead to a bright summer for Cardano. Cardano might see even more action as the market approaches the conclusion of its third quarter. The debut of Iagon, a Cardano-to-ERC-20 token cross-chain bridge, is expected to provide liquidity for the growing number of DeFi protocols and dApps on Cardano.

With hundreds more protocols due to emerge on the blockchain in the next months, we should expect to see more of these volatility periods, which will eventually lead to an increase in total activity.

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Cardano is a cryptocurrency that has seen a lot of ups and downs. It was at its peak in December 2017, but now it’s on the decline again. What are the factors behind this rise, fall, and rise? Reference: what is cardano coin.

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