Arman Shirinyan
Cardano’s growth could be possible in the new year thanks to long-awaited decentralized solutions
Cardano’s decentralized finances have not been the strongest part of the ecosystem, as they only started providing practical decentralized solutions in the second half of last year. Such a tendency was associated with the underlying technology of transactional accounting in the network. In 2023, however, things could change drastically.
The current TVL on the network is $50 million, well below the ATH achieved in 2022 when the total value of assets on the network remained at $350 million. Given the lack of diversity in decentralized solutions in the Cardano ecosystem, such a high number is surprising.
Source: DeFiLiama
In the new year, the Cardano network will release a slew of algorithmic stablecoins, which should bring much more value to the network than decentralized exchanges or yield farming platforms, considering how convenient they bring networks and DeFis.
In the event of a market rally in 2023, Cardano’s TVL could reach new highs, easily surpassing the relatively insignificant $350 million we saw in 2022. In comparison, Solana’s TVL broke the $1 billion mark back in July 2021 and reached the highest value of locked funds on the network in November, surpassing the $10 billion mark.
Obviously, the current amount of locked funds is not going to propel Cardano as an ecosystem to new highs, which is why developers are betting heavily on the DeFi sector as one of the most important and easiest ways to attract fresh capital to the network.
At press time, ADA is still struggling in the market and despite the good end of 2022 and early 2023 is in an ongoing downtrend. The lack of inflows into the cryptocurrency market and the standoff of the DeFi and NFT industries led to the demise of ADA in 2022 and will remain the main source of pressure for the coin in 2023 as well.
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