DeFi: It’s all Sunshine for Cardano until you look at ADA’s price

Lavina Daryanani
Source: Bitcoinist

Despite the not-so-favorable macro-conditions, Cardano’s ecosystem has been able to fairly thrive of late, thanks to its strong fundamentals in the DeFi ecosystem. Consider this – per the stats associated with the development activity on GitHub, this protocol continues to maintain a position itself in the top 10 list.

Alongside, the number of smart contract transactions executed on the Cardano network also defied their flat/downtrend and started inclining a couple of days back. At press time, this metric stood at a bi-weekly high [at 122k], bringing to light the influx of people into its DeFi ecosystem.

The TVL prospects haven’t been as great on SundaeSwap—the OG DEX on Cardano—for the liquidity there has been draining. In the 12-27 April period, the value of assets locked in the DEX shrunk from $62 million to $46 million.

Nonetheless, the TVL on Cardano’s newly-launched DEX WingRiders has substantially increased in the same timeframe. On 12 April, the total value of all the assets locked on the ecosystem was worth merely $571k, however, the same has already surpassed the $60 million thresholds now.

Source: DeFiLlama

Cardano sees more adoption

Over the past week, as assets like Ethereum noted negative institutional flows, Cardano registered a positive number. Per CoinShares’ latest weekly report, institutions bought ADA worth $400k, while they sold ETH worth $16.9k. The aforesaid comparative dataset clearly highlights that institutions have a soft spot for Cardano.

Also, it is interesting to note that, just a day back, crypto hardware wallet company Ledger announced that it has released a new upgrade for the Cardano app to support the latest features of its native ecosystem. Essentially, the Cardano app has been upgraded to v.4.0.0, and the update is smart contract compatible.

Before users update their Ledger Cardano app to the latest version, they are required to update their Ledger wallet firmware and install the Ledger Live App on their device. After that, they can proceed with the Cardano app update. Once done, they will be granted access to Cardano’s decentralized applications via YoROI and AdaLite.

Commenting on the update, Cardano’s founder Charles Hoskinson said,

“Moving the chains. Great work ledger.”

Well, Ledger’s update is undeniably a step in the right direction for Cardano adoption, but the native token has not been very receptive to the same. After noting a 5% and 12% dip in the daily and weekly window, ADA was valued at $0.84 at press time.