Ethereum (ETH) rival Cardano (ADA) has seen its total value locked (TVL) explode nearly 200% since the beginning of the year, crypto analytics firm Messari reports.
TVL refers to the amount of capital deposited within a protocol’s smart contracts and is often used to gauge the health of a crypto ecosystem.
In a new report on the state of Cardano, Messari says that Cardano’s TVL was up 9.7% quarter-over-quarter (QoQ) and 198.6% year-to-date (YTD), allowing the Ethereum competitor to move up from the 34th position to the 21st in overall TVL among all chains.
According to Messari, Cardano’s TVL dipped in June after the U.S. Securities and Exchange Commission (SEC) charged Coinbase for allegedly offering unregistered securities, specifically naming ADA in the lawsuit.
Messari says the development put sell pressure on ADA and caused liquidations on Cardano-based decentralized finance (DeFi) platforms.
The firm says Cardano is also showing promise thanks to accelerated development within the ecosystem, including new stablecoins, wallets and other protocols.
“New infrastructure such as stablecoins, programming languages, and wallets are helping Cardano developers create more sophisticated applications with improved UXs (user experience). During Q2, Cardano’s ecosystem grew 49% QoQ in DApp transactions and 10% QoQ in TVL (USD). More importantly, the ecosystem diversified with newer protocols contributing significantly to various activity metrics.
Multichain solutions, such as Hydra Head and the Milkomeda C1 sidechain, continued to mature and are aiming to support future activity increases, whether that be from DeFi or from gaming. Development on various other sidechains and L2s (layer-twos) signifies Cardano’s multichain vision for the future, even as usage on the base layer continues to experience growth.”
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