Cardano total value locked continued to decline in the last week of May due to decreased investor interest in dApps and a broad crypto market correction.
Cardano continues to fight for a fair share of the decentralized finance (DeFi) market after the successful Alonzo Hard Fork upgrade in September 2021.
According to Be[In]Crypto research, Cardano has lost $205 million in total value locked since reaching an all-time high TVL of around $326 million on March 24, 2022. This figure fell to $120.86 million on May 26.
As a blockchain platform for visionaries, innovators, and changemakers, Cardano is a proof-of-stake (POS) network that provides unique security and durability to systems, corporations, and decentralized applications (dApps) . The Cardano Foundation, Emurgo, and Input-Output Hong Kong (IOHK) are ensuring that the project stays on target as the crypto landscape continues to evolve.
Why the decline in TVL?
Cardano TVL sunk to a 2022 low this week due to a drop in the liquidity of protocols housed in its ecosystem.
Decentralized exchange (DEX) MinSwap, for example, has fallen over 38% in the past month, while another decentralized trading platform WingRiders has also fallen over 50% in TVL over the same month. period.
Other DEXs on the chain such as SundaeSwap and MeowSwapFi have lost more than 41% and 56% respectively of their total values locked.
A dApp that also contributed to TVL’s downfall was ADAX Pro.
Losing over 65% of its locked value, Cardano lost its place in the line of Oasis, Harmony, Moonriver, Celo, Bitcoin, Osmosis, Elrond and Heco.
Despite this, Cardano still has the lion’s share in value locked over Gnosis, Fusion, Eos, Terra, Astar, and Algorand.
ADA price reaction
ADA opened on March 24, 2022, with a trading price of $1.11. and reached a local high of $1.24 on April 4. Since then, the price has dropped dramatically and was trading against $0.47 at press time.
Overall, this equates to a 63% decline in the price of ADA in the past two months.
