Article reading time:
Cardano blockchain creator Charles HoskinsonRecently, he began to argue more often with his ill-wishers on social networks. But how is his Cardano project doing and what are the prospects for this cryptocurrency?
TVL is an abbreviation for the English "totalvalue locked", which means the total locked value. Simply put, the metric reflects how much cryptocurrency is locked in smart contracts in a particular DeFi protocol.
According to the portal DefiLlama, June 5 TVL Cardanoreached a maximum since the beginning of 2023 - $ 222.8 million. As of January 1, 2023, the figure was almost 3.5 times less - $ 64.84 million. However, before the historical maximum of $ 434.74 million set on March 28, 2022, still far.
The largest number of Cardano (ADA) coins are locked in protocols such as Minswap, Indigo and Liqwid. Over the past month, the TVL of each of them increased by 31.31%, 38.12% and 90.68%, respectively.
While the number of people blocked inDeFi protocols of ADA coins are growing, in comparison with competitors Cardano looks relatively modest. So, Ethereum’s TVL is 276 times higher and amounts to $61.57 billion, while Avalanche’s indicator is 8 times higher – $1.79 billion.
Thus, it can be concluded that the totalCardano's popularity is not up to the mark. So far, it is clearly not possible to kill Ethereum, and Charles Hoskinson's project is also inferior to other competitors.
May was the second month in a row that Cardanolost in value. This time the decrease was 6.05%. Note that in May, the decline that began in mid-April was stopped - from April 15 to May 11, the price of ADA fell by almost 24.5%.
The rise in the second half of May coincided with an increaseactivity on the Cardano network. So, from May 13 to June 1, according to Messari analysts, the number of active addresses on the platform more than doubled - from 41,962 to 88,141.
However, there are no reasons for investors to rejoice yet. Cardano is rather in a sideways movement. In addition, the price has not been able to overcome the 50-day moving average.
The current support level is the mark in$0.35, which we managed to push off in May. The level of $0.386 became the local resistance. Globally, it will be possible to talk about a change in the trend to bullish after overcoming the mark of $0.463.
In terms of market capitalization, Cardano is ranked seventh with a figure slightly above $13 billion. How is the platform doing with fundamentals?
Development of Cardano
In terms of announced developments, Cardano isalmost the best project. Representatives of the company publish weekly reports every Friday about what is happening. The last of these was released to the public on June 2, 2023, and on May 31, Cardano parent company IOHK released May results.
So, in the fifth month of 2023, onenew project and 14 more projects have begun to be developed. Interestingly, the June 2 report announced two more launched projects. In addition, during May, the number of native tokens issued on Cardano increased by 150,000, while the number of transactions increased by 1.8 million.
Among the main developments of the Cardano team in May are:
release of node 8.0.0, which fixed some bugs, added new CLI commands and network configuration options;
Lace light wallet platform has been upgraded toversion 1.1.0, which added several new features, for example, new wallet recovery options appeared, and balances in several fiat currencies became available for review at once;
Marlowe is an open source toolkit designed to simplify testing, development and security of smart contracts on the Cardano blockchain;
update 0.10.0 was made, as a result of which the first node in the Hydra protocol was launched, compatible with the main network;
negotiations continued to improve the decentralized management mechanism of Cardano in the era of Voltaire - 1694;
the education team planned a Haskell language course.
Successes in the development of Cardano did not remainunnoticed and third-party resources. So, the analytical platform Santiment posted statistics, according to which Cardano took the third place in terms of activity on Github, overtaking Ethereum and losing only to Kusama and Polkadot.
Also, the ADA token is considered one of the undervalued andbelieve in its growth in the summer of 2023. Thus, Cardano shows quite good results in the field of development. Yes, and the TVL of the platform is growing, although it is still inferior to its main competitors. However, this is not yet reflected in the price of ADA.
This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.