Cardano DeFi on Fire: Market Eyes $1B in TVL

The decentralized finance (DeFi) ecosystem of the layer-1 Cardano blockchain has been on a bullish streak for several weeks.

According to data from DeFiLlama, the total value locked (TVL) of assets on Cardano’s DeFi ecosystem soared to a new all-time high of $809 million on December 1st. At press time, however, that record sits at $725.5 million.

Since its launch in 2021, Cardano’s DeFi ecosystem has grown, and many crypto investors and users have switched to the blockchain for integration with decentralized projects.

Acknowledging the swift growth and new all-time highs, Cardano’s founder Charles Hoskinson said:

“Cardano DeFi is beginning its dawn. I’m glad to see all the pieces come together.”

Cardano’s TVL Boosters

Agreeably, Cardano has become the home of many decentralized applications (dApps) and projects, drawing the attention of over 200 software developers willing to build and launch various dApps offering diverse functionalities with the 90+ available builder tools in the blockchain space.

Leading the list is the MinSwap (MIN) dApp on Cardano, a decentralized exchange (DEX) that allows users to trade and swap assets with minimal fees. Just like the Jupiter DEX on Solana, it is an automated market maker (AMM) that integrates the best asset pool models from across the ecosystem. MinSwap’s 24-hour trading volume ranges from around $6 million to $10 million.

LiqwidX, a decentralized borrowing protocol that accepts Cardano’s native coin, ADA, as deposits for over-collateralized loans, is also a big player in boosting the ecosystem’s TVL. It features decentralized governance and competitive interest rates, drawing the attention of investors.

Furthermore, AdaSwap is a popular multipurpose DEX in the ecosystem. It allows blockchain projects on the system to raise funds, build communities, and launch their tokens via its launchpad. It also features a non-fungible token (NFT) marketplace and “stake and forget” liquidity pools.

Cardano’s ADA Above $1

The significant on-chain transactions and the ecosystem utilities have attracted many crypto investors to the ADA coin. Last month, it hit a historic high of $52.26 billion in transaction volume.

Ranking as the world’s eighth largest crypto, ADA has over $44.2 billion in market capitalization. Notably, it broke the $1.3 mark today and aims for more highs. At press time, it exchanged hands with a trading price of $1.2.

Meanwhile, Hoskinson recently revealed plans to push the development of an active DeFi ecosystem on the Bitcoin blockchain.