Recently, the Cardano network’s Total value locked (TVL) in the DeFi sector saw an extraordinary rise reaching heights of $171 Million. The increase to $171 Million marks the network’s 200% growth since the start of this year and a decent 20% increase in the last month.
Cardano’s staggering increase
One of the primary reasons for this surge in the Cardano network is the increase in the popularity of meme coins in the Cardano network. DeFi enthusiasts have never focused much on the Cardano network about another niche. Still, the network is now desperate for a new niche within itself, giving rise to the meme coin users and creators community.
Due to the increase in popularity of this niche, the network’s DeFi activity has been surging with new projects and meme tokens helping the liquidity and TVL. Although Cardano is considered one of the newbies in the DeFi scene, it has gained popularity because of its features.
Features such as lower transaction fees, faster transaction time, and energy efficiency are some of the features the network has better than its competitors, making it attractive for DeFi projects and meme coins.
The entering of this niche into the network and the coin’s ecosystem has drawn more attention, causing it to bring in the larger crowd of DeFi enthusiasts. And with the advantages of the ecosystem and the decentralized nature of these coins, high returns have been the catch for many investors.
In addition to the meme coin community hopping in, Cardano’s intelligent contract advantages that came along with the Alonzo upgrade have given access to host a wide variety of DeFi applications. From hosting apps such as lending and borrowing to decentralized exchanges, the network has proven its worth and capabilities to investors interested in it.
If the current trend of creators choosing Cardano continues, it won’t be long before Cardano emerges as the most significant player in the DeFi landscape.
What is Cardano and its history?
Cardano is a decentralized network that uses a proof of stake (PoS) blockchain compared to its competitor’s proof of work (PoW).
The cryptocurrency is named after Augusta Ada King (Countess of Lovelace) (1815-1852), renowned as the first computer programmer. Ada is used in the blockchain networks’ PoS mechanism. It is given as a reward to those who work for the blockchain when they participate in the stake pool.
The Cardano platform was launched in 2017 after Charles Hoskinson, the co-founder of Ethereum started working on Cardano in 2015.
Cardano is widely used as an alternative for the Ethereum blockchain. Both platforms are used for similar use cases, such as building decentralized systems and similar applications.
The Cardano has called itself a better alternative to Ethereum as it’s a “third generation platform” while Ethereum’s a “second generation” platform.
