The Cardano blockchain has experienced rapid expansion over the past month. The total value locked (TVL) across its decentralized finance (DeFi) protocols recently topped $440 million and is standing at $443 million, according to the data from DefiLlama. The surge comes as investors diversify across different layer 1 chains beyond Ethereum in search of returns.
After hitting a previous high of around $330 million in April, Cardano’s TVL declined over the summer months before accelerating upward again this fall. The bulk of growth has come in just the past few weeks.
Lending platform Indigo and decentralized exchange Minswap have each seen their TVL jump by over 50% recently to almost $100 million a piece.
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Stablecoin Djed, pegged to the U.S. dollar, witnessed a 45% increase in token supply as users added capital to take advantage of yield opportunities.
Smaller Cardano protocols see notable TVL gains
Smaller protocols like LendFi and Spectrum Finance verged on triple-digit percentage TVL gains, suggesting users feel emboldened to take on heightened risk for greater reward potential.
The expanding Cardano ecosystem has fueled a rally in the blockchain’s native ADA as well. ADA prices spiked 46.4% this week, with prices surging by over 12% in the last 24 hours.
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At the same time, leveraged futures open interest in ADA has doubled over the past month. That indicates a surge of bets that ADA’s price volatility will continue.