The Cardano (ADA) network’s ‘total value locked’ (TVL) saw a 20% growth in 2023, reaching nearly $117 million this week. The development indicates that activities on the blockchain are rising this year with new projects entering in the fold. The network has been in an expansion mode since last year, attracting newer projects after the Vasil hard fork. A total of 4,803 projects now runs and operate on the Cardano network.
Also Read: VeChain Vs Cardano: Which Cryptocurrency Could Reach $1 First?
Coming to retail investors, around 50,000 new wallets have been added each month this year, taking the overall total to climb above 3,894,735 in March, according to data from Cardano Blockchain Insights.
Cardano: Will TVL Growth Push ADA To $1?
While the total value locked on Cardano experienced a 20% jump this year, its previous all-time high remains afar. When ADA reached its ATH of $3.09 in September 2021, the TVL stood at a staggering $3 billion. Therefore, if ADA needs to aim for $1, the TVL requires a dramatic push similar to the market rally of 2021.
Only a bull run could pave the way for the possibility of a push and the current conditions don’t favor it. ADA is hovering around the $0.33 mark unable to break its resistance level of $0.40 for more than two months.
While an increase of 20% in TVL is a positive development, it only shows a brief recovery. The development alone might not take ADA to the finish line. Touching its previous TVL highs of $3 billion might take years, as the global economy is not in the right shape.
However, the Cardano network is showing significant improvement despite a financial downturn. Therefore, when the bull run begins, ADA could kick-start a price run and surprise investors with its efficiency.
At press time, Cardano’s native token ADA was trading at $0.33 and is up 2.4% in the 24-hour day trade. ADA is down 89.07% from its all-time high of $3.09, which it reached in September 2021.