Cardano Price Prediction
• Cardano (ADA) has suffered in the negative momentum of cryptocurrency markets, trading at just above $0.40.
• Despite this, Cardano is still up by 65% on the year due to a rally in the broader crypto market and growth of its DeFi ecosystem.
• Messari reported that the total value locked (TVL) in Cardano blockchain-based smart contracts rose by 170% in Q1 2023 to nearly $140 million.
Negative Momentum Continues
The cryptocurrency which powers the smart-contract-enabled Cardano blockchain and sits at the heart of Cardano’s Decentralized Finance (DeFi) ecosystem, was last down a little over 2.5% on Thursday after dropping over 6% on Wednesday. ADA/USD was last changing hands close just above $0.40, having found support from an uptrend that began in early March and from the 21-Day Moving Average. That means the cryptocurrency around 12.5% lower versus the multi-month highs it hit above $0.46 earlier this month.
Rally in Crypto Market
Crypto has rallied this year on hopes for end to the Fed’s tightening cycle and the possibility of a near-term cutting, driven by slowing US inflation and weakening economic momentum, combined with concerns about the stability of the traditional financial system after last month’s US bank “crisis” and after crypto had arguably become well over-sold at the end of last year. But Cardano has likely also derived support from decent growth in its DeFi ecosystem.
Growth of DeFi Ecosystem
According to a report released by crypto analytics firm Messari, the total value locked (TVL) in Cardano blockchain-based smart contracts rose by 170% in Q1 2023 to nearly $140 million. That was partially down to asset price appreciation, but the TVL growth rate far outstripped ADA’s 54% market cap gain for the quarter. A big catalyst for this increase was a 261% jump in stablecoins issued on their network such as Indigo’s IUSD and Djed’s DJED – which were largely absent prior to Q1 2023 – offering new ways for investors to generate yield from stable assets within crypto markets .
Where Next For Cardano?
With ADA now below support in form of prior highs at around $0.41, many are wondering what’s next for one of world’s largest cryptocurrencies? While there are no guarantees given how volatile crypto markets can be – it seems likely that continued positive news regarding both its underlying technology as well as DeFi projects built on top will continue providing tailwinds that could see ADA climb back toward those multi-month highs or even beyond them if sentiment remains strong enough throughout 2021!