Cardano, one of the most popular blockchain networks, is seeing significant growth in its Total Value Locked (TVL) metrics. Data from DeFi Llama shows that TVL of the Cardano network has seen an increase of 20% almost every month, highlighting the increasing popularity of the network’s DeFi ecosystem.
The rising popularity of ADA among institutional investors
ADA’s rising popularity among institutional investors and large wallet holders could emerge as one of the drivers of the altcoin’s price rally. Based on data from crypto intelligence tracker IntoTheBlock, the volume of large Cardano transactions exceeding $100,000 is on the rise. The trend indicates that institutional investors and Cardano whales are increasing their engagement with the Ethereum-killer token.
While a spike in whale activity is typically considered indicative of a correction in the asset’s price, large volume transactions on ADA network are accompanied by a steady increase in the asset’s price. Over the past week, ADA yielded nearly 8% gains for holders.
TVL grows, but ATH remains far away
While the total value locked on Cardano experienced a 20% jump this year, its previous all-time high remains afar. When ADA reached its ATH of $3.09 in September 2021, the TVL stood at a staggering $3 billion. Therefore, if ADA needs to aim for $1, the TVL requires a dramatic push similar to the market rally of 2021.
Only a bull run could pave the way for the possibility of a push and the current conditions don’t favor it. ADA is hovering around the $0.33 mark unable to break its resistance level of $0.40 for more than two months.
While an increase of 20% in TVL is a positive development, it only shows a brief recovery. The development alone might not take ADA to the finish line. Touching its previous TVL highs of $3 billion might take years, as the global economy is not in the right shape.
Cardano network showing significant improvement
However, the Cardano network is showing significant improvement despite a financial downturn. Therefore, when the bull run begins, ADA could kick-start a price run and surprise investors with its efficiency.
Cardano hit an important milestone in its developmental journey going full peer-to-peer with node 1.35.6. Developers called all Staking Pool Operators (SPOs) to get on the testnet and test the speed and efficiency of the Ethereum-killer blockchain network.