Cardano crosses 500 million ADA in TVL – how about its impact on the price?

A significant milestone has been reached after the Total Value Locked (TVL) on the Cardano blockchain crossed 500 million ADA. This comes exactly one month and days after TapTools predicted exponential growth in the network’s TVL.

In this prediction, TapTools, a Cardano portfolio tracker, also reported various factors that could be key to Cardano’s explosive growth in the coming months.

Cardano DeFi Ecosystem Hits 500 Million ADA in TVL

Data from DeFi TVL aggregator defilama Turns out that the total value locked on the Cardano network now stands at 505.114 million ADA. This is equivalent to $186.18 million when converted to US dollars.

Source: Defilama

This new milestone represents a staggering 91.9% increase in the total value locked since the beginning of the year. Meanwhile, in the past month, Cardano’s TVL has jumped nearly 8%, indicating its continued adoption in the DeFi ecosystem.

On-chain data shows that Minswap is, by far, the leading protocol on the network, with a TVL of $55.56 million. In fact, the decentralized exchange dominated with a market share of 29.84%.

The Minswap protocol is followed by Indigo, a collateralized lending protocol with a net worth of $28.5 million. WingRiders, Liqwid and Djed Stablecoin are three others Notable protocols on the Cardano DeFi ecosystem, with TVLs of $17.51 ​​million, $15.42 million, and $13.71 million, respectively.

It is important to note that Total Value Locked is a metric that estimates the amount of cryptocurrency locked in a DeFi protocol on a particular blockchain. It is calculated by adding up the value of all crypto assets locked in various DeFi protocols on a single blockchain. TVL can be represented in the native token of the blockchain (such as in ADA for Cardano) or in USD.

ADA price shows no significant action

A skyrocketing total value locked is often an indicator of increased activity in the DeFi ecosystem. However, Cardano’s impressive TVL growth hasn’t particularly affected the price of ADA, the blockchain’s native token.

As of this writing, one ADA token is trading at $0.3655, having lost 1% in value over the past 24 hours. ADA price has been trending sideways recently, with a decline of only 0.5% over the past seven days.

ADAUSD trading at $$0.3652 | Source: ADAUSD chart from TradingView

That said, taking a broader look at the market shows that ADA has been on a steady decline, losing over 13% of its value in the past month. The cryptocurrency has a daily trading volume of around $129.3 million.

According to data from coingecoADA ranks as the seventh largest cryptocurrency with a total market cap of $12.79 billion.