Ethereum Competitor Cardano Sees Huge Increase in Total Value Locked and Stablecoin Value at the End of 2023: Messari
Cardano, a major competitor to Ethereum (ETH), experienced a significant surge in total value locked (TVL) in the final quarter of 2023, according to a report from crypto analytics firm Messari.
In its quarterly report, Messari highlights that Cardano’s TVL reached an all-time high of $449 million on December 14, marking a 166% increase compared to the previous quarter.
This surge in the fourth quarter also contributed to a staggering year-on-year growth of 693.4% compared to 2022.
TVL refers to the amount of capital held within a protocol’s smart contracts and is often used as an indicator of the overall health of a cryptocurrency ecosystem.
Rise in TVL Rankings
At the start of 2023, Cardano was ranked 34th among crypto projects in terms of TVL, significantly lower than its market cap ranking at number nine. However, due to its substantial growth throughout the year, Cardano climbed to the 11th position in TVL by the end of 2023.
Stablecoin Growth
Cardano also experienced notable growth in the stablecoin sector last year. According to Messari, the introduction of new stablecoins, such as iUSD and DJED, played a crucial role in driving TVL growth in early 2023. In Q4, the total value locked in stablecoins increased by 36.8% to $21.5 million. Cardano’s stablecoin market cap rose from 54th to 32nd place in 2023 compared to other networks.
Stable assets are highly valuable for liquidity pools, borrowing and lending, creating leverage, and providing stability amidst market volatility – all common occurrences in the crypto market.
Current Status of ADA
As of now, ADA is trading around $0.603 and has seen a more than 4% increase in the past 24 hours.
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