According to DefiLlama’s analytics dashboard that tracks activities on chains, Cardano’s TVL is down 83%, and Minswap is dominating with 41%
As of the time of writing, the Cardano chain has seen a massive decrease in Total value locked on the chain with a TVL of $56 million. This can be attributed to investors losing interest in the Cardano ecosystem and the dApps they offer.
The chain suffered from a liquidity drain between March 2022 and September of the same year. Falling from around $300 million to below $100 million. This places Cardano at the 30th spot behind Gnosis and Heco.
Minswap, that’s taking the top spot on the Cardano chain, has gone down 17% in one month. Minswap is a liquidity protocol that operates by integrating multiple asset pools within the Cardano DEX ecosystem. This allows the project to draw liquidity from both stable pools and multi-asset pools and, thus, operate as an oracle on the chain.
The project was launched on the 9th of March 2022 and, within two weeks, achieved the highest TVL on the Cardano chain. In a bid to remain decentralized, Minswap is quick to point out its fair distribution system. This gave no room for VCs or private investment, ensuring the community wasn’t made up of speculators and insiders.
They even conducted what they call a “Fair Initial Stake Offering” or FISO, which is similar to an ISO, except the nominated stake pools were all small staking pools. This was aimed at protecting its decentralization.
Regardless of the current situation of Cardano’s TVL, users are still bullish about the project.
#Cardano will be a top altcoin to hold in 2023 and most people won’t realize it until it’s 1,000%+ again.$ADA
— Dan Gambardello (@cryptorecruitr) January 1, 2023
On the 1st of January, Dan Gambardello, the founder of Crypto Capital Ventures, went on Twitter to say that Cardano’s token, ADA, would be the top altcoin in 2023, and most people wouldn’t appreciate it until it’s too late, when it rises 1,000% again.
In response to his tweet, other users believe that regardless of the TVL and the movement of ADA’s value, Cardano is an actual company that works with a goal in mind and real-life utilities. Thus they have way more employees, backbone, and technologies than any other altcoin existing.
Thus they speculate that with the upcoming government regulation, it’s expected that the curve would be in Cardano’s favor, the crypto space would understand the value of the project, and all their work would come to fruition.