• Cardano’s ADA price volatility has dropped to the lowest level since January.
• The total value locked (TVL) in Cardano’s ecosystem has been growing and now stands at $197 million.
• Transaction volume has increased by 205% between January and this week, with most of the users engaging in Cardano having amounts between $10 and $50.
Cardano Price Volatility Slips To January Lows
The ADA price volatility for Cardano has dropped to its lowest levels since January 2021. This is indicated by a strong downward trend in coin volume since 9th January 2021. The current ADA price is sitting around $0.3705, which is more than 20% lower from its highest point this year. This decrease in volatility and volume points towards investors focusing their attention on debt ceiling issues as Democrats and Republicans disagree on how to raise it before 1st June 2021 deadline.
Total Value Locked In Cardano Ecosystem
Data compiled by DeFi Llama shows that the Total Value Locked (TVL) within the Cardano ecosystem has jumped to an all time high of $197 million which is way higher than its low last year which was around $70 million. Similarly, TVL within the dApps attached to Cardano such as MinSwap, Indigo, WingRiders, Liquid or MuesliSwap have also seen a jump in their respective TVLs in recent weeks.
Transaction Volume Increase
According to data gathered by IntoTheBlock, there has been a significant increase in transaction volume within the Cardano blockchain over the past few months with an increase of 205% when compared with figures recorded at the end of 2022. Most of these transactions are made up of small traders with amounts ranging between $10-$50 per transaction.
Conclusion
Cardano looks like it will continue trending downwards for some time due to its decreased volatility and lack of investor interest resulting from unresolved debt ceiling issues among other factors. However, TVL within the ecosystem remains healthy and increasing while transaction volumes have experienced a notable spike as well indicating that there may be potential for growth after all if these trends reverse themselves soon enough.
References
DeFi Llama: https://defillama-data-api-v1-docs-prod-uatd9t8xgjyqz1m6bwc3lccbg7fkq3l7tk6lrfz1ysdkw1nxrq8a4lojy7ocmawe3fuy/index
IntoTheBlock: https://twitter.com/intotheblock/status/1396637678535485440
