Cardano’s native DeFi protocols surge as TVL soars 230% in 2023

data from Defilama It showed that the Total Value Locked (TVL) of the Cardano DeFi ecosystem currently stands at $161.81 million.

As of the beginning of 2023, this figure will be $50.097 million, representing a year-to-date (YTD) growth of 229%.

Cardano TVL
sauce: Cardano TVL on

TVL measures the value of digital assets locked into a specific DeFi protocol/ecosystem. Measure ecosystem health and perceived trust. Rising TVL indicates willingness to expand the protocol/ecosystem.

While the broader cryptocurrency market has been stagnant in recent weeks, notable protocol milestones have kept the Cardano DeFi ecosystem on the uptrend.

TVL analysis

The Cardano DeFi ecosystem went live on January 2nd, 2022 when the MuesliSwap mainnet launched, with a TVL of $845,000.

Additional DeFi protocols, including SundaeSwap, soon followed, with TVL reaching a peak of $326 million in mid-March 2022. Since then, TVL fell sharply and fell into a bottom-trending pattern, reaching a local bottom of $48,948,000 on January 1, 2023.

From that point on, the value locked in Cardano continued to climb, reaching a year-to-date high of $171 million by April 15th. Although there was a slight decline after that, recently the macro uptrend seems to be strengthening again.

The decline in TVL in March 2022 is in line with the broader DeFi market. For example, the chart below shows that the TVL of all protocols has fallen precipitously after hitting its all-time high of $162.975 billion on April 4, 2022.

In contrast to Cardano’s year-to-date TVL gain of 229%, all protocols show flat results, corresponding to a 24% increase from January 1st.

All DeFi TVLs
sauce: All Protocol TVLs on

Cardano DeFi protocol milestone

Interest in Cardano DeFi is growing thanks to the significant milestone achieved by the native protocol establishing itself in the cryptocurrency space.

MinSwap is the largest Cardano DeFi protocol by TVL, holding a 36.1% lead. On May 23rd, the team announced It was a “record-breaking” and “historic” day, with ADA reaching 30.3 million daily transactions and Cardano DEX becoming the 9th largest, with MinSwap accounting for 87% of it. It became the 17th largest DEX across all chains.

Similarly, according to a tweet from Alexander Legolas, lending protocol Aada leaked in a telegram that the V2 testnet release is nearing. Legolas said this will be the first time Flash Loans are introduced on Cardano.

Aada token is up 66.7% last week.Minimum Swap Earned 8.9% over the same period.

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