In a recovering cryptocurrency market, the Cardano blockchain token is up nearly 30%. Cardano (ADA), an Ethereum competitor, is up 29% in the last 24 hours. According to CoinMarketCap, ADA is currently trading at $0.6799(R10.61).
Cardano’s native token is ADA. Cardano is a proof-of-stake layer-1 blockchain that competes with Ethereum. The coin’s trading volume has also increased significantly across major cryptocurrency platforms. Over the last 24 hours, its trade volume has hovered above $2.4 billion(R37.5), a 272 % increase from the prior trading day.
With a market capitalization of $22.6 billion(R353B), the token has surpassed Ripple’s XRP to become the sixth-largest cryptocurrency.
Despite today’s gains, ADA is still down 78% from its all-time high of $3.10 (R48.38)set in September 2021.
What fuels Cardano?
Today’s bullish action is primarily due to increased DeFi activity on the layer-1 blockchain and the launch of Lagon’s cross-chain bridge.
Minswap, a decentralized exchange (DEX) platform and the largest Cardano DeFi protocol, also saw a spike in user activity. According to DeFi Llama data, the TVL on the platform grew 21.7 % in the last 24 hours, rising from $56.13 million(R876M) to $74.01 million(R1.2B).
Other protocols, in addition to Minswap, have reported a spike in TVL of at least 15% in the last 24 hours, including WingRiders (a DEX platform), Sundaeswap (also a DEX), and Meld (a lending protocol).
Aside from TVL, total transaction volume on Cardano increased dramatically in the last 24 hours, rising from $9.57 billion(R149M) to $14.24 billion(R222M), according to Messari data.
Cardano launched its Alonzo fork in August 2021, allowing developers to build DeFi applications on top of Cardano. According to CoinMarketCap data, the coin increased by more than 116 % in less than a month following the Alonzo fork.
In other news, Lagon announced the launch of a cross-chain bridge to ease token transfers between Ethereum and Cardano on May 25. The bridge now only accepts USDC, but will soon handle all ERC-20 coins.
“We feel that our solution powered by Cardano contributes to Cardano development and progress,” tweeted Lagon, the group in charge of developing the Ethereum and Cardano cross-chain bridge.
Meanwhile, Bitcoin (BTC), the largest cryptocurrency on the market, is up 2.95 % in the last 24 hours and is presently trading at roughly $31,559(R492K).
Ethereum (ETH) is presently trading at $1,970(R30 733), up 3.26 % in the last 24 hours.
According to Cardano’s showcase, 92 decentralized apps have been built on Cardano since the debut of the Alonzo fork.
Many of these applications are now witnessing an increase in activity.
The Total Value Locked (TVL) on Cardano climbed by 30.56 % in the last 24 hours, according to Defi Llama, indicating greater DeFi activity. Cardano’s TVL is currently at $194.87 million(R3B), up from $149.25 million(R2.3B) yesterday.