Cardano beats largest projects in the industry as its marketcap reached $40 billion
Cardano comes in at number seven as one of the largest blockchains in the world, with over $40 billion in total market capitalization. The surge was followed by the market and underlying growth of a project that recently celebrated $300 million TVL.
ADA/USD 4-hour chart | Source: TradingView
Why did the Cardano market cap spike?
The main reason behind such a rapid increase in capitalization is tied to the growth of the network from both a market and fundamental perspective. The capitalization of the project correlates with the price of ADA — the price of this token recently hit $1.2.
It is impossible to increase the price without more and more decentralized solutions offered by Cardano. Previously, two solutions users will be able to see this year: decentralized peer-to-peer lending and lending and Interoperable Layer 2.
The main reason behind such an increase is tied to at least two factors: the release of new DeFi platforms such as Minswap and the general recovery of the DeFi industry, which has lost some popularity from December to May.
According to DeFiLIama, the total value of funds locked across all projects in the industry increased from around $200 billion to $223 billion at the end of March. Cardano’s total value of locked funds across blockchain-enabled platforms and applications has grown from $134 million to $326 million in the past 28 days.
The influx of money into the DeFi industry shows that the market demand for riskier assets is increasing, and investors are more actively redistributing their portfolios, exposing them to riskier options more like high APY stable coins.
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