Cardano beats largest projects in the industry as its marketcap reached $40 billion
Cardano (ADA) comes in at the seventh place among the largest blockchains in the world with over $40 billion in total market capitalization. The increase was followed by both market growth and fundamental growth from a project that recently celebrated $300 million in TVL.
Why did ADA’s market cap spike?
The main reason behind such a swift increase in capitalization is tied to the growth of the network from both a market and fundamental perspective. The capitalization of the project correlates with the price of the underlying ADA token—the price of which has recently reached $1.2.
The price increase would not have been possible without an increasing number of various decentralized solutions powered by Cardano. Previously, U.Today outlined two solutions users could see this year: decentralized peer-to-peer lending and borrowing and an interoperable Layer 2.
Why did the TVL of Cardano show a 350% increase in March?
The main reason behind such an increase is tied to at least two factors: release of new DeFi platforms like Minswap and the general recovery of the DeFi industry that lost some of its popularity back in December-January.
According to DeFiLIama, the total value of funds tied up in all projects in the sector rose from around $200 billion to $223 billion at the end of March. As for Cardano, the total value of funds locked on blockchain-powered platforms and apps has increased from $134 million to $326 million in the past 28 days.
Inflows into the DeFi industry indicate that the market’s demand for risk-on assets increased once again, and investors are more actively redistributing their portfolios, exposing themselves to riskier options like high-APY stablecoins.
