Cardano’s TVL Dips $50 Million As Market Tension Rise
Cardano’s TVL Dips along with the price.
The markets are crashing hard, and Cardano is among the thousands of tokens that have taken a severe hit. A quick look at all the market charts shows red everywhere, showing just how extensive this crash has been. While the price issue is a bad sign for the holding community, the decrease in the Total Value Locked in the ecosystem is even more worrying.
According to recent data derived from Data Studio, Cardano’s TVL seems to have taken a hit and slumped by $50 million. The TVL stood at $197,871,696 on May 1st but dropped to $144,393,520 in few days.
This occurs at a time when the price is also crashing. At the time of this writing, ADA is trading at around $0.49, representing a 15% drop in 24 hours and a 38% loss in the last seven days. That’s according to data currently on CoinMarketCap.
While there are many metrics used in the DeFi industry to gauge the viability and capabilities of projects, the Total Volume Locked (TVL) is the most important.
Ethereum’s market share in the DeFi industry stands at the lowest ever percentage of 55%. Just last year, Ethereum’s blockchain power fueled roughly 67% of the projects in the DeFi space. However, Ethereum still remains at position one as the most preferred blockchain for DeFi projects. Terra comes in second with $28.92 billion in TVL, followed by the BNB Chain in third place hosting $12 billion worth of DeFi TVL.
At the time of this writing, Cardano’s TVL totals just around $144.3 million, putting the network in the 32nd place among the preferred blockchains hosting DeFi projects. This puts the Cardano blockchain behind others like Astar, Thera, Gnosis, EOS, and Celo.
Are We In Winter?
The current market slump has left many crypto investors confused. Is it another crypto winter or just a flash correction that will pick in no time? According to a statement recently released by Cardano’s founder and CEO Charles Hoskinson, it appears that the crypto market might be at the doorsteps of another winter.
According to the CEO, winter could take weeks or months, depending on market dynamics. The last crypto winter of 2019 lasted for close to a year. That makes Charles’s optimistic outlook of weeks or a few months reassuring
Cardano Ecosystem Is Still Strong
Surprisingly, Cardano’s development agenda has remained unaffected by the current market conditions. The network has seen numerous developments and new entities coming on board, even in the wake of the bearish onslaught on the token’s price.
At the moment, it’s unclear whether the decrease in the network’s Total Value Locked (TVL) will affect the price in the short term. Also, it’s still early to predict whether the decrease will be progressive or will be reversed in the coming days. As is always the case in the crypto industry, time reveals everything.
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