Cardano’s DeFi activity makes an impressive rebound, thanks to…
Hit hard by the bear market of 2022, Cardano [ADA] experienced a change of fortune on its DeFi front. The total value locked (TVL) on the network’s smart contracts hit $102 million, recording its best performance in six months.
Source: DeFiLlama
Furthermore, the total decentralized exchange (DEX) volume on the chain also hit its 10-month high recently, having attained a 36% week-over-week (WoW) growth at press time.
February has been welcoming for Cardano. But the question is- What could be fueling this rise?
Source: DeFiLlama
How much are 1,10,100 ADAs worth today?
A lot of credit behind Cardano’s impressive DeFi growth could be given to its recently launched over-collateralized stablecoin, Djed.
It is an established fact that stablecoins decrease volatility in crypto markets and act as a useful hedge against wild swings in price. This increases their utility in decentralized finance as activities like borrowing, lending, and derivatives require a stable value.
Unsurprisingly, Djed’s contribution to Cardano’s liquidity echoed the same sentiment. Two weeks after launch, the stablecoin accounted for more than 8% of Cardano’s TVL, per data from DeFiLlama.
Source: DeFiLlama
Additionally, more enhancements were expected as part of an upcoming upgrade which could lead to greater deployment of DeFi protocols on the network.
<p lang=«en» dir=«ltr» xml:lang=«en»>This upgrade will bring new cryptographic primitives to #Cardano, encouraging greater interoperability and secure cross-chain DApp development with #Plutus.— Input Output (@InputOutputHK) February 8, 2023
In spite of the above developments, the picture was not rosy. ADA’s weighted sentiment which was favorable in the week following the launch of Djed, went into
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