Key Takeaways:
- Cardano’s Total Value Locked (TVL) has grown by 250% in 2023, currently at $177.83 million.
- Long-term investors have increased their ADA holdings by 4% since the regulatory issues began.
- ADA’s price could consolidate above the $0.25 support level, influenced by the TVL growth.
Cardano (ADA) price made a promising start to 2023, peaking at $0.45 in mid-April. However, regulatory concerns caused intense FUD, pulling the price down. Even with ADA’s decline of 36% from its 2023 peak, Cardano’s DeFi ecosystem tells a different story. Despite regulatory challenges, Cardano TVL has surged, showing a significant divergence from its price movement, indicating sustained network demand.
The SEC’s Role in ADA’s Price Decline
For context, ADA’s price dropped 42% in June 2023 following the SEC’s classification of ADA as a security. Despite this, Cardano’s TVL has continued its growth trajectory, signaling robust ecosystem utility. On-chain metrics show Cardano’s long-term investors remain positive. They’ve increased their stake by 4% since regulatory concerns began, reinforcing the ecosystem’s value and long-term potential.
ADA Price Outlook Amid Lawsuits
Despite looming regulatory issues, the intrinsic value represented by TVL growth could assist ADA in maintaining a critical support at $0.25. IOMAP data suggests the price could consolidate above this point, with significant holder activity at both the $0.27 and $0.26 levels, potentially resisting a further downswing.
The evident TVL growth and increase in long-held coins during ADA’s price downtrend could set the stage for a potential reversal. As investors consolidate within the ecosystem, Cardano’s future seems to be leaning more toward growth than decline.
Source
https://defillama.com/chain/Cardano?fees=false&users=false&volume=false&price=true