Cardano’s TVL Rose Sharply By Over 6% In 24 Hours. Here’s Why
The total Value Locked in Cardano climbed by 6.5 percent, or 5,000,000 ADA, during the day, according to data from DefiLlama. Apart from staking, there are 171,560,000 ADA held in Cardano protocols altogether. Right now, this amount is equal to $53,560,000.
The same source suggests that the growth in the TVL of Cardano may be due to the cash inflows into leading DeFi blockchain networks like Minswap and SundaeSwap.
The demise of FTX resulted in a significant shift away from centralized exchanges. Instead, investors moved to decentralized platforms while some swapped their assets for fiat.
Cardano was also affected, but the biggest decentralized exchanges recorded a massive rise in funds. Nevertheless, ADA’s price continues to exert significant downward pressure on Cardano’s TVL.
ADA’s Price Movement
The price of Cardano’s native token (ADA) remains a contentious issue. In August 2021, ADA gained 840% and traded at $2.9. However, it has since wiped off all those gains and trades around its January 2021 price levels.
However, it is yet to drop below the crucial support zone. This zone is the price at which ADA was listed on the Binance exchange four and half years ago.
The exciting thing is that ADA has two options. It leaves this “zeroed out” area quickly or experiences more losses. The latter would result in another price halving and cause ADA to trade at $0.16.
Cardano (ADA) has gained backing from Coinbase Japan, the Tokyo-based subsidiary of the most prominent American crypto exchange. The Coinbase subsidiary has added Cardano’s native token to the list of digital assets tradeable on its platform.
Coinbase started offering its services to Japanese residents in June of last year after fulfilling all the requirements by the nation’s financial regulator (the FSA). Before listing altcoins on its platform, Coinbase Japan offered only Bitcoin transactions.
Recently, Coinbase Japan also listed AVAX, the governance token of one of the acclaimed “Ethereum killers,” Avalanche. Japan continues to be one of the largest crypto hubs amid its strict crypto regulation.
Next month, Japan aims to relax the requirements for listing cryptocurrencies on crypto exchanges. This can make it a market that is even more desirable.
According to sources familiar with the matter, the JVCEA (Japan Virtual Crypto Assets Exchange Association) will no longer prescreen cryptos before crypto exchanges can list them.
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