As the sector becomes more competitive and the crypto winter persists, activity in the Cardano ecosystem is decreasing. According to data, ADA trapped in the DeFi ecosystem is now worth a record 625 million.
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Since the ecosystem began 2023 with more than 204 million ADA tokens, it has performed effectively. But as of late, the amount of tokens joining the ecosystem is expanding more slowly.
Cardano’s DeFi TVL at Record High with Sluggish Growth,Cardano’s DeFi TVL at Record High with Sluggish Growth
The largest decentralised app (dApp) in the Cardano ecosystem is MinSwap, a decentralised exchange with over $39 million in total value locked (TVL). The assets of the collateralized debt position (CDP) platform Indigo exceed £8 million. Strong growth has also been achieved by other major participants in the ecosystem, such as Liqwid, Optim Finance, and Djed Stablecoin.
Developer commits are another indicator of a faltering sector. These commitments have decreased from a peak of 50 in March to just 22 in the last 24 hours. Additionally, Cardano’s overall fee revenue has been declining.
As the cryptocurrency winter drags on, Cardano and other layer 1 and 2 blockchains are up against a lot of obstacles. For instance, the industry now faces much more rivalry. Recently, Optimism, Base—which is owned by Coinbase—and Arbitrum have becoming more popular options.
Avalanche, Cronos, and Kava are some other layer-1 networks that are suitable substitutes for Cardano.
The other issue that Cardano is facing is monetary policy, as interest rates are still at their highest point in decades. Safe investments like cash have become more appealing due to higher rates. While money market funds and certificates of deposit (CDs) yield 6%, short-term bonds yield more than 5%.
All of this suggests that a lot of investors are switching between safe and riskier assets, such as equities and cryptocurrency. Additionally, the continuing legal battles such as the SEC case against Binance and Coinbase have discouraged individuals from using digital currency.
Cardano’s DeFi TVL at Record High with Sluggish Growth,Cardano’s DeFi TVL at Record High with Sluggish Growth,Cardano’s DeFi TVL at Record High with Sluggish Growth, Cardano coin Crypto news, Cardano coin News