Three possible reasons why Cardano shot up by 30 % in 7 days

Three possible reasons why Cardano shot up by 30 % in 7 days

The Cardano price was on fire last week. During this time, cryptocurrency could increase by a whopping 30 %. Even if this applies to most of the market, Ada is still the best performer among the top 10 coins after total capitalization.

and while Charles Hoskinson recently revealed that his new health facility will go into operation in one month and that ADA will also accept ADA as a payment method, let's take a look at three more realistic and possible reasons for this rally.

The total value enclosed in Cardano increases

The first metric to be taken into account is the TVL (Total Value Locked) in various protocols that work on the Cardano blockchain. Data from the popular analysis tour for Defi Llama show that the TVL has risen by almost 40 % since the beginning of 2023.

At the time of writing this article, it is around $ 67.29 million, with Minswap keeping the lion's share of it with more than $ 27 million.

It is also worth noting that the majority of the climb also took place in the last 24 hours when the TVL scored about 20 %.

Defi Lama

Defi trade volume shoots up

Another important key figure that you should look at is the overall transaction volume on Cardano-based defi protocols. It rose significantly again in 2023.

In the past seven days alone, the transaction volume has increased by around 57 %, while Minswap alone recorded an increase of around 76 %. It is also the market leader, as something expected.

Defi

Market hype about the upcoming introduction of Algo Stablecoin Djed

Another thing that could have driven the Cardanos Ada price is the hype that builds up for the introduction of the highly expected algorithmic stable coin called DJED.

as CryptoPotato As reported in November 2022, DJED is expected to see the light of day in January of this year. It is the most ambitious plan for an algorithmic stable coin based on Cardano.

How it works: Users can send ADA to a certain smart-contract address on Cardano and in return DJED in the same dollar value. You can also burn Djed to get ADA.

algorithmic stable coins had their worst year with the collapse of the entire Terra-Luna ecosystem. However, the anticipation of the event is still increasing, and this could be one of the reasons for the recent increase in the ADA price.

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