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Breaking News: Bitcoin To Bottom Out In 300 Days: Top Expert Forecasts $38,000 To $50,000 Price Point

Rapid Rise In Cardano’s TVL Points Toward Bullish Sentiment Around ADA

Best Owie
Best Owie
Last Updated: July 5, 2023 11:00 pm
3 mins read
Cardano (ADA)

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Cardano is one of the most prominent proof of stake (POS) blockchains that requires users to stake their native tokens, ADA, to confirm and secure transactions on the network. Over time, the network has held the record for the largest percentage of its token supply staked. And once again, the blockchain has solidified its position in this regard as it reaches a new high for the total amount of ADA staked in decentralized finance (DeFi) protocols.

Cardano Token TVL Reaches New All-Time High

Back in September 2021, Cardano saw the completion of the Alonzo hard fork upgrade, an update that brought smart contracts capability to the network. What this meant was that developers could now build decentralized applications (DApps) on the blockchain, finally bringing the decentralized finance (DeFi) sector to Cardano.

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Since then, there has been a steady rise in the number of DeFi protocols being built on the blockchain. And as developers have flocked to the network, investors have followed suit, leading to a rapid rise in the number of staked ADA as users invested in various protocols.

Although there were dips along the way, especially in the crypto winter of 2022, the tide has turned in 2023 and the number of staked ADA has now hit a new high. According to data from DeFiLlama, the total number of ADA staked on the network reached 560.7 million on Tuesday, July 4, a new all-time high.

Total ADA staked in DeFi protocols reaches ATH | Source: DeFiLlama

However, the new milestone is only reflected in the number of ADA staked and not in the total valued locked (TVL) in dollar terms. DeFiLlama shows that the current dollar equivalent of $161.82 million is still 50% below its March 2022 all-time high of $316.36 million.

How Will ADA Price Respond?

Like the altcoins in the crypto market, the price of ADA has responded closely to the movement of Bitcoin. As a result, over the last day, the digital asset has recorded a decline in its price. This is happening despite the latest TVL milestone.

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This decline suggests that the price of ADA is not reacting positively to the new all-time high in Cardano TVL, meaning it remains isolated at this point. However, it could point to a bullish movement further out as the DeFi interest in the blockchain continues to grow.

Currently, ADA is trading at a price of $0.28 which translates to a 3.30% decline in the last 24 hours. But on the 7-day chart, the altcoin is still seeing gains of around 5%. If the general market rallies again, then ADA is likely to retest the $0.3 resistance.

Cardano (ADA) price chart from TradingView.com

ADA price struggles to hold $0.28 support | Source: ADAUSD on TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com
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Best Owie
Best Owie

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

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Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

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Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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