Cardano DeFi TVL Spikes in the New Year, But ADA Price Suffers

Activity on the Cardano network has ticked up recently. In response, the prices of its native coin, ADA, have also increased today.

Some of the leading decentralized finance protocols on the Cardano network have seen an uptick in activity.

According to DeFiLlama, Cardano’s top five DeFi protocols have increased activity over the past 24 hours.

Minswap, the leading DEX on Cardano, has seen TVL increase by 2.53% over the past day. Furthermore, Indigo, WingRiders, and MuseliSwap have all increased their TVL by more than 5% on the day.

The leading Cardano DEX in terms of gains, however, is Meld.

Meld Momentum Surges on Cardano

The Meld lending and non-custodial banking protocol has seen a 20% surge in TVL over the past week. This has propelled the protocol to second place in the Cardano ecosystem.

Meld TVL is currently around $15 million. It allows users to securely lend and borrow both crypto and fiat currencies and stake MELD tokens for yields. Additionally, MELD prices have increased 7% over the past 24 hours, according to CoinGecko.

On Jan. 3, Meld announced that it would be staying on Cardano but building a subnet on Avalanche in an effort to become multi-chain. The protocol has also recently received an Electronic Money Institute (EMI) license. This would allow it to onboard American customers and operate in more than 100 countries.

Furthermore, according to data providers, Cardano dApps have just reached a milestone of 16 million transactions:

Cardano DeFi TVL has increased by 11% since the beginning of the year. As a result, it is currently around $72 million. However, the chain’s DeFi TVL is still down around 83% since its peak in March 2022.

ADA Price Outlook

ADA prices have seen solid gains today, with a move of around 6% over the past nine hours. As a result, ADA was trading at $0.264 at the time of press.

Like most crypto assets, however, ADA has been pretty flat over the past month or so. It has lost 80% over the past year and is currently down 91.4% from its September 2021 all-time high of just over $3.

Increased DeFi momentum on the network is likely to have a positive effect on coin prices which are targeting the $0.30 level.

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