Cardano has been steadily climbing in price since its inception, and now is the time to be catching up with it. The cryptocurrency has recently passed Ethereum’s market cap to become the third most valuable blockchain at $19 billion+.
The “tvl crypto” is a cryptocurrency that is pegged to the US dollar. The “Djed’s Testnet Goes Public” is a decentralized stablecoin that has been released on the Ethereum blockchain.
Cardano was one of the most heralded Layer 1 chains in 2021, and it was supposed to be home to some of the most popular DeFi Dapps, but events immediately after its introduction failed to put it in the same league as Ethereum and Binance Smart Chain. So, how did Charles Hoskinson reach to the conclusion that Cardano’s TVL is above $19 billion? Let’s get started.
Is Cardano’s DeFi Really $19 Billion in Value?
Charles Hoskinson, the creator of Cardano and a co-founder of Ethereum, has a lot of influence in the crypto business. As a result, Hoskinson noted in one of his tweets yesterday,
“Fun Fact: Cardano’s TVL would be almost 19 billion dollars if you added the staked Ada.” Why don’t we add it up? Because you can bet your Ada without locking it. (sic)”
His assertion is valid since 24.6 billion ADA is staked, accounting for 72 percent of the total supply.
While fair, his remark came as the public testnet for Cardano’s stablecoin Djed became online. Djed ranks with TerraUSD (UST) and DAI as a decentralized, algorithmically backed stablecoin.
The way Djed works is that it uses a mix of collateral and a reserve token to guarantee stability.
SundaeSwap, Minswap, and WingRiders, three of Cardano’s most popular DeFi protocols, are also testing the stablecoin via test pools on their platforms to determine whether it has any real-world uses.
The reason this is significant is because Djed is crucial in reigniting the excitement around Cardano’s smart contracts among crypto investors.
Cardano’s Ascension and Fall
The expectation for the implementation of smart contracts in August 2021 boosted Cardano’s native token ADA to $2.96, making it the world’s third most valuable cryptocurrency.
Cardano investors reached their peak at the same time that network-wide supply saw the largest ADA profit.
As a result, August was the final month in which ADA investors were successful, with just 0.8 percent of investors losing money.
However, it took a long time after its introduction to really show any use cases in the DeFi market, which disappointed investors and caused Cardano’s value to plummet by nearly 75%.
As a consequence, Cardano only has $200 million in total value locked in, but it does have industry backing, which thinks the chain has the potential to become a much bigger DeFi blockchain.
The ‘Wave ADA Yield Fund,’ developed by Wave Financial LLC, is proof of this. This fund was created to help new DeFi protocols enter the Cardano ecosystem with liquidity. The same Wave has pledged a $100 million investment to help and grow Cardano’s DeFi space.
To summarize, although Cardano may not seem to be a profitable DeFi blockchain at this time, continued innovations and the aforementioned backing may provide it with the edge it needs to become a key player in the crypto industry.
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