Despite the recent market dip, Cardano’s decentralized finance (DeFi) ecosystem has seen a significant surge in activity, with transactions on Cardano DeFi apps soaring to 250,000 per epoch from 160,000 transactions during the previous epoch. This remarkable 56% increase in transaction volume has been attributed to the launch of new DeFi protocols on the network and the active community of developers and users driving innovation for the protocol.
Cardano DeFi Challenges Market Slump
According to Cardano Ambassador Yevhen, the latest hype around meme coins like Snek and Pepeblue has also contributed to the transaction surge. Snek is a crypto asset based on memes of snakes with interior monologue captioning, while Pepeblue is a recently introduced crypto asset on the Cardano network and in its metaverse. Yevhen believes this increased interest in meme coins has brought new users to the network and boosted transaction volume.
Aside from the hype around meme coins, several crypto exchanges and liquidity protocols on the Cardano blockchain have reported significant increases in activity in recent weeks. Per Yevhen’s analysis, these include Sundaeswap ($SUNDAE), Minswap ($MIN), MuesliSwap ($MILK), Wingriders ($WRT), and Liqwid Finance ($LQ). These protocols have been lauded for their user-friendly interfaces, low transaction fees, and high liquidity.
Sundaeswap, for example, is a decentralized exchange that allows users to trade Cardano-based tokens with low slippage and high liquidity. The platform has seen a surge in activity thanks to its user-friendly interface and low transaction fees. Minswap, on the other hand, is a decentralized exchange that allows users to trade Cardano-based tokens with zero fees.
Furthermore, Liqwid Finance, a decentralized lending protocol on the Cardano network, has already surpassed $50 million in total value locked in just a few months since its launch. This platform allows users to lend and borrow Cardano-based tokens with low fees and high liquidity.
The recent surge in Cardano DeFi activity has been attributed to various factors, including the launch of new DeFi protocols, the active community of developers and users on the network, and the hype around meme coins.
ADA Follows The Market Trend
The recent dip in ADA’s price can be attributed to the broader market downturn affecting the cryptocurrency industry. Over the past few days, several major cryptocurrencies, including Bitcoin and Ethereum, have experienced significant price declines, dragging down the entire market.
The price of Cardano’s native cryptocurrency, ADA, has experienced a significant dip in the past 24 hours, reaching the $0.3586 level. This marks a 40-day low for the cryptocurrency, with the last time it was at this level being April 28th. However, ADA has managed to stall a further decline and has reported a slight gain of 0.9% in the last 24 hours, trading at $0.3630
The decline in Cardano’s native token, ADA, is further compounded by the fact that it has lost its 50 and 200-day moving averages (MA) since the onset of its decline on April 28th. In the event of further drops, ADA must maintain two critical support levels to prevent a potential decline to the $0.2 territories, which it has not visited since January 2023. These levels are the $0.3441 level and the $0.3034 floor.
Featured image from Unsplash, chart from TradingView.com