Cardano Records TVL And Stablecoin, DeFi Is Getting More And More Glitter

Cardano, an Ethereum competitor blockchain platform, has increased. (Photo; Doc. Cryptomist)

JAKARTA - Cardano (ADA), the third-generation blockchain platform that competes with Ethereum, is enjoying tremendous growth in the DeFi sector (decentralized finance). According to a report from Messari, crypto analytics firm, total value locked (TVL) and stablecoin value on Cardano networks such as DJED and iUSD have hit new records in the fourth quarter of 2023.

TVL is a liquidity measure available in a DeFi protocol, which shows how much of the assets stored by the user in it. Stablecoin is a type of crypto whose value is tied to fiat currency or other assets, which aims to reduce price volatility.

Cardano TVL Up 166% In One Quarter

According to a Messari report, TVL Cardano in the US dollar rose 166% in the fourth quarter, from 169 million US dollars (Rp2.64 trillion) at the end of September to 449 million US dollars (Rp7.01 trillion) on December 14. This figure also reflects year-over-year growth of 693.4%, from 56.6 million US dollars (Rp883.9 billion) at the end of 2022.

The increase in Cardano TVL also increased its ranking among all blockchain networks based on this metric. Cardano rose from 15 to 11 during the fourth quarter, and from 34 to 11 throughout 2023.

Cardano Stablecoin Soared 1.000%

In addition to TVL, Cardano's stablecoin value also experienced a significant spike in the fourth quarter. Cardano's stablecoin value in the US dollar jumped 1.000%, from 4.7 million US dollars (IDR 73.4 billion) at the end of September to 52.1 million US dollars (IDR 813.5 billion) on December 14.

Stablecoin Cardano consists of iUSD and DJED, which launched in the third quarter of 2023. iUSD is an algorithmic stablecoin whose value is tied to US dollars, while DJED is a collateral-based stablecoin similar to the DAI on Ethereum. These two stablecoins serve as basic assets for various DeFi applications on Cardano, such as loans, exchanges, and derivatives.

In addition, there is also a USDM stablecoin that will be launched in the first quarter of 2024 by Mehen, a DeFi protocol operating on Cardano. USDM is a collateral-based stablecoin supported by other crypto assets, such as ADA, ETH, BTC, and others. USDM aims to be the main stablecoin in Cardano, by offering stability, liquidity, and interoperability.

Cardano Ready To Become A Serious Competitor In DeFi

With the impressive growth of TVL and stablecoins, as well as the growing innovation and variety of protocols, Cardano shows that the platform is ready to become a serious competitor in the DeFi sector, which is currently dominated by Ethereum.

Cardano has an advantage that can attract users and developers of DeFi, namely higher transaction speed and efficiency, thanks to a Proof-of-Stake (PoS) consensus algorithm called Ouroboros, which is claimed to be one of the safest and most environmentally friendly PoS algorithms in the world.