Ethereum (ETH) competitor Cardano (ADA) saw its total value locked (TVL) explode in the fourth quarter of 2023, according to cryptocurrency analytics firm Messari.
In the new quarterly report, Messari pointed out that Cardano’s TVL hit an all-time high of $449 million on December 14 and increased 166% in the fourth quarter compared to the previous quarter.
The project’s rapid growth in the fourth quarter also contributed to an increase of 693.4% compared to 2022.
TVL represents the amount of capital deposited within a protocol’s smart contracts and is often used to measure the health of the cryptocurrency ecosystem.
Cardano ranks 34th among cryptocurrency projects in terms of TVL since 2023. This is well below ADA’s market capitalization ranking, which currently ranks 9th. Thanks to the huge increase over 2023, the project finished in 11th place in TVL.
Cardano has also seen significant stablecoin growth over the past year. Messari explains:
“Cardano’s TVL growth in early 2023 was fueled by the introduction of new stablecoins: iUSD and DJED. Stablecoins continued to be a good indicator of the state of DeFi in the fourth quarter, with total locked value increasing 36.8% to $21.5 million. Compared to other networks, Cardano’s stablecoin market cap rose from 54th to 32nd in 2023. Stable assets are ideal for combining liquidity pools, borrowing and lending, creating leverage, and providing a quick escape from volatility. All of this is very common in the industry. “Cryptocurrency Market.”
ADA is trading around $0.603 at the time of this writing and is up over 4% in the last 24 hours.
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Featured image: Shutterstock/antishock/Mingirov Yuriy