The founder of the Cardano (ADA) network and CEO of the blockchain company Input Output Global (IOHK), Charles Hoskinsons, recognizes the adoption the network is experiencing. On-chain data from the network shows that Decentralized Finance (DeFi) usage has increased significantly since the beginning of the year.
Last Wednesday shared the Cardano founder shared the strong adoption numbers of the altcoin network on Twitter. Hoskinson says that despite the significant headwinds the project has received over the past month, the on-chain data reflects the true nature of the coin.
Cardano came under attack from the US Securities and Exchange Commission (SEC), which says it sees the project as a security. The trauma investors are experiencing with the long-running case between the SEC and Ripple caused immediate panic in the market. As a direct result, the ADA price fell from $0.38 to a local low of below $0.24, down nearly 40% in less than a week.
The twitter message clearly shows how DeFi has grown on the Cardano network compared to other major projects. What is striking is that the Total Value Locked (TVL), the total value in DeFi protocols, has grown by almost 150% in the past 6 months. Other projects such as Binance Smart Chain and Ethereum (ETH) see a decrease of -29% and -25% respectively. Polygon (MATIC) and Solana (SOL), on the other hand, also experience growth, with 21% and 52%, but not in relation to the Cardano network.
Cardano on track to pass milestone
The DeFi adoption on the Cardano network continues to grow steadily, as can be seen in Figure 1. Since January this year, adoption has really picked up speed. What is striking is that the trend is increasing faster and faster, in June the total TVL started to increase even faster despite the criticism from the SEC.
In recent days, we are seeing another increase in trend making the 600 million ADA milestone in DeFi protocols just a matter of hours. The strong adoption is seen as a positive development for the ADA course. It shows that there is strong demand for the coin and to deploy it in various dApps.
Free 20 euros worth of Crypto
Do you want to enter the crypto world and perhaps buy Cardano? Then we have great news for you! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers are getting an exclusive offer.
If you sign up to Bitvavo via the button below, you will not only receive 20 euros for free, but you will also not pay any trading fees on your first 10,000 euros worth of transactions.