Cardano Price Forecast as Blockchain's Total Value Locked Figure Reaches All-Time High – ADA Adoption on the Rise?

cryptonews.com:

The ADA-denominated value of cryptocurrency locked within smart contracts on the Cardano blockchain recently reached an all-time high of 341 million ADA, according to data presented by DeFi Llama. ADA is the token that powers Cardano’s smart-contract-enabled high-performance blockchain that is seen as a rival to the Ethereum blockchain.  

The ecosystem got a boost earlier this year upon the launch of the Djed over-collateralized algorithmic stablecoin, which has opened new yield farming possibilities in the Cardano DeFi ecosystem. Djed’s circulating supply is already around 2.1 million, while the protocol has a reserve ratio of 471%, according to the project’s website.

When tokens engaged in Staking, Pool2 protocols, Borrows, Liquid Staking and Vesting are taken into account, Cardano’s “trade value locked” (TVL), the number of ADA tokens rises to over 387 million worth over $120 million at the current market price. However, this is still a little below its all-time high from early 2022.

Despite the recent rise in the ADA-denominated value of Cardano’s TVL, a significant fall in the USD-denominated price of ADA in the last few weeks means that the USD-denominated TVL on the Cardano blockchain remains well below its early 2022 highs. The highest TVL Cardano ever saw was over $430 million around 12 months ago.

Back then, Cardano’s price was closer to $1.0 per token. As of the time of writing, ADA/USD is changing hands just above $0.31, down around 90% from its all-time highs, and down 25% since finding strong resistance in the $0.42 area in early February.

The cryptocurrency’s aggressive drop in the last few weeks comes amid broader crypto market weakness as a result of strength in the US dollar, US yields and weakness in