Cardano Reaches All-Time High as ADA Adoption Surges to New Heights

• The total value locked (TVL) in Cardano’s blockchain has reached an all-time high of 341 million ADA, indicating growing adoption of the platform.
• Despite this, the USD-denominated TVL on the Cardano blockchain remains well below its early 2022 highs, due to a significant fall in the USD-denominated price of ADA in the last few weeks.
• Technically speaking, ADA/USD has fallen below all of its major moving averages and appears to be in a downtrend that goes back to June 2022.

Cardano Price Forecast as Blockchain’s Total Value Locked Figure Reaches All-Time High

According to data from DeFi Llama, the ADA-denominated value of cryptocurrency locked within the Cardano blockchain has reached an all-time high of 341 million ADA – indicating growing adoption of the platform.

ADA Adoption on the Rise?

ADA is the token that powers Cardano’s smart-contract-enabled high-performance blockchain that is seen as a rival to Ethereum’s blockchain. The ecosystem received a boost earlier this year with Djed over-collateralized algorithmic stablecoin launch which opened new yield farming possibilities within Cardano’s DeFi ecosystem. Djed’s circulating supply stands at 2.1 million tokens with a reserve ratio of 471%.

USD Denominated TVL Still Way Below 2022 Highs

Despite recent rise in ADA denominated value for TVL, significant fall in USD denominated price for ADA seen over last few weeks means that USD denominated TVL on Cardano’s blockchain still remain way below early 2022 highs. Highest ever TVL recorded was over $430m around 12 months ago when price for Cardano was closer to $3 per token.

Where Next For Cardano (ADA)?

Recent drop in prices mean cryptocurrency now trading below all major moving averages and appears to be trending downwards since June 2022. Failure by ADA/USD to break decisively above 200 day moving average last month indicates lack of momentum for positive shift in near term price outlook.

The outlook for Cardano isn’t looking great in the near term and signs point towards a fallback under $0.30 being highly likely, opening up further losses back to late 2022 levels.