Cardano TVL Surpasses Bitcoin as DeFi Ecosystem Gains Momentum

Cardano’s DeFi ecosystem has experienced remarkable growth, surpassing Bitcoin in Total Value Locked (TVL) with a surge to $240 million.

Cardano DeFi ecosystem has continued its impressive expansion, attracting more capital than Bitcoin-related protocols in the third quarter of this year. According to data provided by DeFiLlama, Cardano now holds the 11th spot among leading blockchains in DeFi TVL, boasting an impressive total of over $240 million.

The DeFi TVL metric, which quantifies the value of assets locked in financial applications and protocols on a specific blockchain, is a crucial indicator of a protocol or chain’s ability to attract capital and its value within the broader crypto economy. Cardano’s recent ascent to the 11th position in the DeFi TVL rankings is a significant achievement, marking its overtaking of Bitcoin.

Cardano On-Chain Metrics Soar to New Highs

Analyzing Cardano’s on-chain metrics, the data reveals that approximately 662 million ADA coins, equivalent to around $240.67 million, are locked across various protocols on the Cardano blockchain. Notably, this figure represents an all-time high for Cardano’s TVL in ADA, demonstrating a remarkable increase of more than 200% since the beginning of the year, when it stood at 200 million ADA.

Cardano DeFi Attracts Power Users

One intriguing aspect of Cardano’s DeFi success is that it has achieved this milestone with significantly fewer users compared to Bitcoin-related protocols. While Bitcoin protocols boast around 990,000 active addresses, Cardano lags with approximately 47,000 active addresses. This discrepancy suggests Cardano has become a hub for power users, individuals with substantial investment capital.

In contrast, Bitcoin-based protocols, such as the Lightning Network, primarily serve transactional purposes and do not require long-term deposits.

Eying the Top 10: Next Challenge For Cardano

On Cardano’s quest to ascend the DeFi TVL rankings, the Coinbase-backed layer-2 network Base is next in line. Base currently holds a TVL of $290 million, meaning Cardano must accumulate around $50 million in TVL to secure a spot among the top 10 blockchains by DeFi TVL. However, such an achievement does not appear out of reach if Cardano continues its impressive growth trajectory.

Cardano Price on the Rise

Beyond the DeFi supremacy race, the price of Cardano’s native cryptocurrency, ADA, has been on an upward trajectory. Over the past week, ADA has gained 18.30%, trading at approximately $0.3533.

Cardano’s DeFi ecosystem’s substantial TVL growth and its ability to overtake Bitcoin in this crucial metric demonstrate the blockchain’s burgeoning influence and its potential to disrupt the DeFi landscape further. As Cardano’s journey continues, all eyes are on the emerging developments within this dynamic ecosystem.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.