Ethereum (ETH) competitor Cardano (ADA) witnessed an explosion in total value locked (TVL) in the last quarter of 2023, according to the crypto analytics firm Messari.
In a new quarterly report, Messari notes that Cardano’s TVL set an all-time high of $449 million on December 14 and increased 166% in Q4 compared to the previous quarter.
The project’s fourth-quarter surge also contributed to a 693.4% year-on-year increase compared to 2022.
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.
Cardano started 2023 ranked 34th among crypto projects in terms of TVL, far lower than ADA’s market cap ranking, which currently sits at number nine. Thanks to the massive increase across 2023, the project closed out the year ranked 11th in TVL.
Cardano also witnessed significant stablecoin growth last year. Explains Messari,
“Early in 2023, Cardano’s TVL growth was catalyzed by the introduction of new stablecoins: iUSD and DJED. Stablecoins continued to be a good indicator for DeFi health in Q4 as the stablecoin total value locked increased 36.8% to $21.5 million. Relative to other networks, Cardano’s stablecoin market cap moved up from 54th to 32nd in 2023. Stable assets are ideal for pairing in liquidity pools, borrowing and lending, creating leverage, and providing quick escapes from volatility – all of which are quite common in the crypto market.”
ADA is trading around $0.603 at time of writing and is up more than 4% in the past 24 hours.
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