According to Messari’s State of Cardano Q3 2025 report, the network’s DeFi ecosystem is showing remarkable resilience and maturity after months of subdued activity.
Key Takeaways
- Cardano’s DeFi TVL rose 28.7% QoQ to $423.5 million, its highest since early 2022.
- Liqwid Finance overtook Minswap as the largest protocol with $101.6 million TVL.
- Stablecoin supply increased 21.5% QoQ to $38.1 million, led by USDM and USDA.
- A more diversified ecosystem now supports Cardano’s push toward sustainable DeFi growth.
Cardano’s DeFi landscape made an impressive recovery in Q3 2025. Total value locked (TVL) climbed nearly 29% to $423.5 million, marking its strongest position since early 2022. This revival was driven by an influx of liquidity into lending platforms, stablecoin protocols, and newer decentralized exchanges.
The renewed momentum highlights a clear shift in user behavior—Cardano’s DeFi activity is becoming more utility-driven rather than speculative. Developers focused on user experience and protocol diversity are helping transform the network into a credible liquidity hub capable of sustaining steady capital flows.
Liqwid Takes the Lead
One of the standout developments this quarter was the rise of Liqwid Finance, which surpassed Minswap to become Cardano’s top DeFi protocol. Liqwid’s TVL jumped 50.8% QoQ to $101.6 million, largely fueled by its expanding lending markets and adoption of qTokens, which allow users to earn yield while maintaining exposure to collateral assets.
Minswap, despite seeing its TVL fall to $53.4 million, remains the dominant DEX, accounting for roughly three-quarters of all Cardano trading volume. The exchange continues to serve as the network’s primary liquidity layer, even as newer platforms like Splash and WingRiders grow in user activity.
Elsewhere, Indigo Protocol maintained strong performance in synthetic assets, reaching $32.9 million in TVL. Splash, a newer DEX that mimics the “pump.fun” model from Solana, grew 16.2% to $27.4 million, showing that creative use cases are beginning to find their place in Cardano’s DeFi scene.
Broadening Protocol Diversity
A healthy sign for Cardano’s evolution is its rising DeFi diversity score, which increased from nine to ten in Q3. This means the ecosystem’s liquidity is now distributed across a wider range of protocols rather than being concentrated in just a few.
State of @Cardano Q3 2025
Key Updates: @InputOutputHK released the Halo2–Plutus verifier, bringing native zero-knowledge proof verification to Plutus smart contracts, while @MidnightNtwrk’s partnership with @GoogleCloud signaled enterprise confidence in Cardano’s privacy stack.… pic.twitter.com/YcA6ac7qhz
— Messari (@MessariCrypto) November 10, 2025
Cardano’s DeFi ecosystem is now shaped by lending and borrowing platforms, synthetic asset issuers, algorithmic stablecoins, and new trading protocols that take advantage of Cardano’s extended UTXO model. This diversity makes the network less vulnerable to shocks and more resilient in a volatile market.
Stablecoin Growth Strengthens Onchain Liquidity
Stablecoins have become a central pillar of Cardano’s liquidity base. The total stablecoin market cap on the network rose 21.5% QoQ to $38.1 million, reflecting increased demand for reliable settlement assets.
USDM from Moneta remains the largest, with $12.9 million in circulation after a 17.4% quarterly increase. The asset expanded to new infrastructures, including Sundial’s Bitcoin Layer-2. USDA, issued by Anzens with EMURGO’s support, followed closely with $10.4 million, boosted by new off-ramp options for users in Japan.
Meanwhile, the algorithmic stablecoin DJED, developed by Input Output Global (IOG) and COTI, grew 38% to $25.5 million in TVL as integrations across lending and DEX platforms increased. IUSD, issued by Indigo, adjusted its interest model to maintain peg stability, while USDC appeared on Cardano for the first time via cross-chain bridges.
This growing variety indicates Cardano’s emergence as a stablecoin-friendly environment capable of supporting both fiat-backed and algorithmic models.
DJED and the Push for Privacy-Enabled Stability
DJED’s success lies not only in its design but also in its direction. Backed by ADA reserves and stabilized through the SHEN token, it has become a key liquidity source for lending protocols. The upcoming Private DJED, unveiled by COTI at Rare Evo 2025, will extend this model into confidential transactions, allowing enterprises to operate privately without sacrificing regulatory transparency.
This privacy layer aligns with Cardano’s broader vision through Midnight, its zero-knowledge partner chain. Together, they form the foundation for a financial system that balances transparency, compliance, and user privacy—a combination few blockchain ecosystems have yet achieved.
DeFi Volume and DEX Expansion
Average daily DEX trading volume rose 6.1% QoQ to $3.8 million, a modest yet important increase considering the overall decline in application transactions. This trend suggests that while total network activity softened, liquidity and trading quality improved.
Among DEXs, WingRiders grew nearly 20% in average daily volume, while Splash surged 43%, becoming one of the fastest-growing platforms on Cardano. CSWAP, known for aggregating NFTs and real-world assets, stayed stable at $1.6 million TVL and is preparing a new RWA platform.
This progress underscores that Cardano’s DEX ecosystem is no longer limited to token swaps. It is evolving into a multifunctional environment encompassing synthetic assets, RWAs, and liquidity optimization tools.
Cardano’s DeFi rebound highlights a network entering its next stage of maturity. Liquidity is diversifying, stablecoins are gaining adoption, and technical upgrades are making decentralized applications more scalable. The days when Cardano lagged in DeFi infrastructure appear to be fading as its core protocols achieve consistent growth.
Quick Snapshot
- DeFi TVL: $423.5 million (+28.7%)
- Stablecoin Market Cap: $38.1 million (+21.5%)
- Leading Protocol: Liqwid Finance ($101.6 million TVL)
- DEX Activity: $3.8 million daily volume (+6.1%)
Looking Ahead to Q4 2025
As Cardano enters Q4, several developments could further expand its DeFi ecosystem. CSWAP’s upcoming RWA launch, Private DJED integrations, and new liquidity injections planned by the Cardano Foundation are all expected to strengthen market depth and user confidence.
If sustained, this momentum could help Cardano close 2025 as one of the fastest-growing Layer-1 DeFi ecosystems, combining transparent governance, stablecoin growth, and privacy-driven financial innovation.
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Source: https://coindoo.com/cardano-defi-surges-as-stablecoin-market-expands-in-q3-2025/