Cardano’s ADA could be in for a mammoth recovery, according to Crypto Capital Venture founder Dan Gambardello. Gambardello bases his prediction on a leading indicator: DeFi inflows into the Cardano ecosystem.
ADA Set For Enormous Ascent
As the broader market struggles to find momentum for the next upward leg, a well-known crypto influencer is identifying one major catalyst that could trigger ADA’s price comeback.
In an April 5 tweet, Dan Gambardello noted that the increase in total value locked (TVL) on Cardano-based DeFi applications will turn out to be the “most obvious leading indicator of the coming $ADA price increase.”
The TVL of the Cardano network currently stands at $139.81 million, data from DefiLlama shows. The value is even bigger when we also consider staking, coming in at over $150 million.
Interest in Cardano DeFi has heightened since the launch of the Djed stablecoin in late January. Other tokens back the overcollateralized decentralized stablecoin and requires between 400% and 800% in collateral value to be posted before they can be issued to a user.
What Lies Ahead For Cardano?
ADA fell 3.41% over the day, changing hands at $0.3818 at the time of this writing. Notably, the explosive growth in Cardano’s TVL is expected to continue throughout 2023.
After getting the Valentine upgrade that made significant enhancements to cross-chain functionality for the decentralized finance (DeFi) apps built on the Cardano blockchain, the network is now preparing to usher in a new feature that will allow users to gain access to Ethereum dApps directly from ADA wallets.
These strong Cardano fundamentals could limit ADA’s downside prospects and prompt traders to re-accumulate the coin in the coming weeks.
Moreover, with the ongoing fiscal momentum surrounding the crypto industry showing no signs of ebbing amid the U.S. banking system turmoil, the $30,000 zone has continued to serve as a substantial hurdle for Bitcoin. However, if the pioneer cryptocurrency breached this level, it would embolden altcoins like ADA, potentially causing their prices to spike.