The Cardano’s project is one of the most innovative and ambitious ones in the crypto space, aiming to create a decentralized platform that can run smart contracts, decentralized applications, and decentralized finance (DeFi) protocols. However, the network has faced some challenges recently, as the US Securities and Exchange Commission (SEC) has labeled its native token, ADA, as unregistered security in its lawsuits against Binance and Coinbase.
This has caused some investors to lose confidence in Cardano and its DeFi ecosystem, leading to a decline in its total value locked (TVL), which measures the number of assets staked or locked in DeFi protocols.
Cardano’s TVL Drops by $50 Million
According to data from DeFi Llama, Cardano’s TVL has dropped by about $50 million since June 5, falling from $183.06 million to $133.18 million at the time of writing. This loss has affected the network’s top DeFi apps, such as SundaeSwap, Minswap, and Liquid Finance, which have seen their TVL decrease by 16%, 14%, and 13%, respectively. These apps are among the first to launch on Cardano after the network’s long-awaited smart contract functionality was enabled by the Alonzo upgrade in September 2022.
However, despite this setback, Cardano’s DeFi ecosystem is not giving up. Several signs show that the network’s users and developers are still optimistic and committed to building and using DeFi on Cardano. For instance, the number of active users on the network has not decreased since the SEC’s lawsuits were announced.
In fact, it has even spiked to levels last seen in February 2023. This indicates that there is still a strong demand and interest in Cardano’s DeFi products and services.
Another sign of resilience is that Cardano’s TVL in terms of ADA has reached a new all-time high of over 507 million ADA, which represents a 250% increase since the beginning of the year. This means that more ADA holders are locking their tokens in DeFi protocols, despite the price volatility and regulatory uncertainty.
Cardano’s DeFi ecosystem has faced some challenges due to the SEC’s actions against Binance and Coinbase, which have labeled ADA as a security. This has caused some investors to exit the network and its DeFi protocols, resulting in a decline in its TVL.
However, there are also signs of resilience and optimism among Cardano’s users and developers, who are still using and building DeFi on the network. Cardano’s TVL in terms of ADA has reached a new all-time high, and its active user base has not diminished.
