After a relatively strong quarter, Cardano (ADA) has continued to signal explosive growth thanks to impressive fundamentals over the past quarter.
Last week, the 7th largest cryptocurrency by market capitalization managed to close above a key psychological resistance zone that could embolden bulls for the better part of the remaining year. Generally, ADA has surged over 70% since tapping a low of $0.25 last December, making it one of the largest gainers in the top 10 coins by market cap year-to-date.
Whereas Cardano’s remarkable recovery can be attributed to an overall crypto market sentiment improvement, the network’s ecosystem has been booming with activities, boosting its overall attractiveness to whales.
According to a Tuesday report by crypto research firm Messari, one of the biggest drivers to the rise in ADA’s market cap has been the significant increase in its Total Value Locked (TVL), which grew 172% from last quarter to $138.3 million.
Protocols building atop Cardano, such as MinSwap and Liqwid Finance, have been key contributors to this growth, as more users onboard to leverage Cardano’s wealth of use cases. This growth has further fuelled ADA’s market capitalization expansion from $8.6 billion in the last quarter of 2022 to $13.2 billion by March 31. At the time of writing, that figure had risen to just over $14.5B.
As per the report, stablecoins have also played a significant role in the overall growth of Cardano’s ecosystem. The introduction of new stablecoins on the network, such as Indigo’s IUSD, Djed’s DJED and RUSD, drove total stablecoin value up by 261% in the past quarter, meaning their overall volume grew even faster than ADA’s overall TVL did. This surge in stablecoin adoption suggests that the Cardano platform can accommodate other digital assets beyond just the ADA token.
One of the most significant developments for Cardano in recent months has been the opening of the first Hydra Head on the mainnet. This development is expected to significantly improve the platform’s scalability and attract more developers to build decentralized applications on Cardano.
In addition to the opening of the Hydra Head, Milkomeda C1, Cardano developers IOG continue to work towards new use cases in the greater Cardano ecosystem and increasing interoperability through projects such as EVM proof-of-concept sidechain, Wanchain, and Midnight. These efforts are crucial for expanding the use cases for ADA and attracting more users to the platform.
That said, Cardano’s impressive fundamentals and recent developments suggest that the platform is well-positioned for future success, with the $1 price milestone on the horizon.
At press time, ADA was trading at $0.41, down 4.80% in the past 24 hours, after retesting the yearly support of $0.40 early Wednesday.