Cardano ecosystem start in the sector DeFi we can consider it successful. However, the network still does not have a sufficiently large total value locked (TVL) compared to the competition. What the boss himself thinks?
Cardano and the DeFi sector
Founder and current head of the ecosystem Cardano expressed how they could significantly increase the total locked value in the DeFi protocols.
Cardano is not currently the leader in the DeFi area, but when it comes to the networks with the largest percentage of bundled supply, this network is at the top of this list. With more than 72% of the total supply that is going down, Cardano has millions of dollars in the network. But why isn’t this value included in the official TVL values?
The main difference is that ADA staking tokens do not require the user to have their assets locked for a longer period. So you basically earn rewards for staking and you can get your coins move at any time.
Charles Hoskinson also disagrees with this situation. According to him, the TVL of the ecosystem would be completely different if the total of stacked coins were also included. If that were the case, the network would have a TVL level $ 19 billion.
Fun Fact, if you counted the staked Ada, cardano’s TVL would be over 19 billion dollars. Why don’t we count it? Because you don’t need to lock your Ada to stake it.
– Charles Hoskinson (@IOHK_Charles) May 6, 2022
With this situation, the Cardano network would be the third largest platform in terms of TVL. The leaderboard is current Binance Smart Chain, which has a TVL worth $ 12.03 billion. In the case of Cardano, it’s just over $ 200 million.
Despite this worrying situation, the number of users on the network is constantly growing. As many as 3.2 million new wallets were added in the first quarter of 2022.