Cardano’s blockchain-based ADA token has risen about 60% over the past week, outperforming other top cryptocurrencies such as Bitcoin and Ethereum. Price-performance has driven the growth of the current decentralized finance (DeFi) ecosystem.
Over the past seven days, ADA has surged from $0.38 to a yearly high above $0.65.
What is driving ADA price performance?
The seven-day surge made ADA the best-performing asset among the top 50 cryptocurrencies and the best-performing asset among the top 100 over the past 24 hours.
The recent bullish trend in Cardano price effectively erased all losses accumulated earlier this year. This represents a remarkable 150% increase in ADA value in 2023, with most of the increase occurring in the past six months.
ADA’s impressive performance can largely be attributed to the overall positive trend in the cryptocurrency market. As Bitcoin continues to reach new all-time highs, altcoins, including ADA, have mirrored this upward momentum.
Read More: Cardano (ADA) Price Prediction for 2023/2025/2030
Santiment, a notable cryptocurrency analytics platform, highlighted a decline in the total number of ADA addresses. Such declines are often seen as a positive sign as they suggest that smaller investors may be capitulating by selling at a loss to larger holders.
Nonetheless, Santiment advised caution. The data analytics platform noted that Cardano is experiencing its highest social dominance this year.
This observation suggests that investors may be overly enthusiastic, potentially leading to fear of missing out (FOMO) in the market.
Cardano DeFi Grows to All-Time Highs
The recent surge in the price of ADA has led to a resurgence in Cardano’s decentralized finance (DeFi) space, reaching an all-time high of approximately $420 million.
Cardano’s strong DeFi ecosystem is evident in its growth among the top 10 protocols. According to DeFiLlama data, these protocols have experienced significant double-digit growth over the past month. Notably, Indigo is the first DeFi protocol to exceed $100 million in total value locked (TVL) on its network.
Read more: Top 10 Cryptocurrencies to Invest in December 2023
Cardano’s network has also witnessed notable increases across key metrics such as fees, transaction volume, and active addresses.
For example, Cardano’s decentralized exchange recorded over $14.87 million in trading volume in the last 24 hours. This metric had grown 193% in a week to $62 million at the time of reporting, showing the platform’s growing traction.
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