Cardano’s price has been on fire throughout the past week. The cryptocurrency managed to increase by a whopping 30% during that time. Even though this is true for most of the market, ADA is still the best performer from the top 10 coins by means of total capitalization.
And while Charles Hoskinson recently revealed that his new healthcare facility will be up and running in a month and also accept ADA as a payment method, let’s have a look at three more realistic and possible reasons for this rally.
The first metric to consider is the TVL (Total Value Locked) in various protocols operating on the Cardano blockchain. Data from the popular analytics resource, DeFi Llama, reveals that the TVL soared by almost 40% since the beginning of 2023.
At the time of this writing, it sits at around $67.29 million, with Minswap holding the lion’s share of it with more than $27 million.
It’s also worth noting that most of the increase came in the past 24 hours as well when the TVL shot up by around 20%.
Another important metric to take a look at is the total transactional volume on Cardano-based DeFi protocols. Once again, in 2023, it has been increasing substantially.
For the past seven days alone, the transaction volume increased by some 57%, whereas Minswap alone experienced an increase of around 76%. It’s also the market leader, as somewhat expected.
It’s also worth noting that the trading volume on centralized exchanges also skyrocketed on this latest move, and it currently stands at around $850 million for the past 24 hours.
Another thing that could have propelled the price of Cardano’s ADA is the hype building up toward the launch of the highly-anticipated algorithmic stablecoin called DJED.
As CryptoPotato reported back in November 2022, DJED is expected to see the light of day in January this year. It’s the most ambitious plan for an algorithmic stablecoin based on Cardano so far.
The way it will work is users can send ADA to a certain smart contract address on Cardano and receive the same dollar value worth of DJED in return. They can also burn DJED to receive ADA.
Algorithmic stablecoins have had their worst year in 2022 with the collapse of the entire Terra-Luna ecosystem. However, there’s still anticipation building up to the event and it could be part of the reasons for the recent increase in the price of ADA.
