Despite a 15% drop in the total value locked into the entire decentralized financial sector in 2022, the Cardano protocol has seen a massive increase in locked liquidity in its crypto project.
Cardano has been a big part of smart contract-backed blockchain technology since the project was launched in 2017.
Cardano has been a significant part of the decentralized finance market since the launch of the Alonzo hard fork in September 2021, which finally triggered smart contract functionality.
This has contributed to change the fortunes of the entire project in 2022.
According to BeInCrypto Research, Cardano has increased the Total Value Locked (TVL) by about 25,259.3% since early 2022. On January 1, Cardano’s TVL was $822,261, and it increased to approximately $208,520,000 on March 16, 2022.
As the first blockchain platform to be founded on peer-reviewed research, Cardano is a proof-of-stake protocol that was developed through evidence-based methods. It thrives on a combination of technologies that provide unparalleled stability and security to societies, systems and decentralized applications (DApps). As a technology that continues to grow on a daily basis in TVL, Cardano has many use cases under the banners of education, retail agriculture, government, health care and finance.
What Contributed to the Spike in Cardano Net Value Lock?
However multiple sources state that Cardano has a number of DApps under the banner of Lending, Payments/Wallets, Trading, Interest Accounts, Derivatives/Options, Asset Management, Insurance, Financial Analysis, and Identity/Know Your Customer, which is a reputed company. Sources such as the Defilama list only six decentralized protocols. Protocols that have contributed to the changing fortunes of Cardano’s TVL include decentralized exchange Sunda Swap (about $112.28 million), MiniSwap (about $95.36 million), Muesli Swap (about $1.6 million), and ADX Pro (about $14,060). .
Others contributing to the total value locked in the future include, but are not limited to, lending protocols VyFinance (VYFI) and Meld (MELD).
After crossing over $200 million in TVL in March, which can be attributed to a massive percentage gain on the above decentralized exchanges, Cardano has fallen into the top 30 chains with the most value locked.
Latest Project Developments on Cardano
On Saturday, March 12, 2022, Charles Hoskinson, Chief Executive Officer (CEO) of Input Output Hong Kong (IOHK) and founder of Cardano, announced via a tweet that fans of the protocol should expect more DApps in the future, when Vasil Hard Fork will be launched. June 2022.
According to Cardano’s roadmap, the Vasil hard fork will be focused solely on a series of scaling enhancements. This will bring many changes to the Cardano ecosystem, especially the development of smart contracts. With the opening of the first Hydra Heads (Layer 2 scaling solution aimed at improving the scalability and security of the blockchain) in March, Cardano could handle at least 2 million transactions per second starting June 2022.
At the time of writing, Cardano has seen an increase in development activity. Cardano lags behind Solana (SOL) and Uniswap (UNI), but has overtaken Polkadot (DOT), Kusama (KSM), Ethereum (ETH) and Flow (FLOW) in the current growth activity rankings.
Unfortunately, the jump in the total value locked has not been positively reflected in the price of Cardano’s novel token, ADA. The crypto trading asset opened on January 1, 2022 with a trading price of $1.31 and rose 24% to an annual high of $1.63 on January 18.
As of writing, ADA is trading 49% of its yearly highs and trading in the $0.7819 and $0.8614 zones.
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