Cardano is one of the most prominent proof of stake (POS) blockchains that requires users to stake their own 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. And again, the blockchain has solidified its position in this regard as it hits a new high for the total amount of ADA deployed in decentralized finance (DeFi) protocols.
Cardano Token TVL reaches new all-time high
In September 2021, Cardano saw the completion of the Alonzo hard fork upgrade, an update that brought smart contracts to the network. This meant that developers could now build decentralized applications (DApps) on the blockchain, finally bringing the decentralized finance industry (DeFi) to Cardano.
Since then, the number of DeFi protocols being built on the blockchain has steadily increased. And as developers flocked to the network, investors followed suit, leading to a rapid rise in ADA stakes as users invested in different protocols.
While there were dips along the way, especially in the crypto winter of 2022, the tide has turned in 2023 and the amount of ADA staked has now reached a new high. According to data from DeFiLlama, the total number of ADA deployed 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 reflected only in the number of ADA staked and not in the total value locked (TVL) in dollars. DeFiLlama shows that the current dollar equivalent of $161.82 million is still 50% below the March 2022 all-time high of $316.36 million.
How will the ADA price react?
Like the altcoins in the crypto market, the price of ADA has reacted closely to Bitcoin’s movement. As a result, the digital asset has registered a drop in price over the past day. This happens despite the latest TVL milestone.
This drop suggests that the price of ADA is not responding positively to the new all-time high in Cardano TVL, meaning it remains isolated for now. However, it could indicate a bullish move ahead as 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 overall market rises again, ADA will likely retest the $0.3 resistance.
ADA price struggles to hold $0.28 support | Source: ADAUSD on TradingView.com