This is why the price of Cardano (ADA) is up more than 60% in a week.
Cardano's blockchain native ADA token is up nearly 60% in the past week, outperforming top cryptocurrencies like Bitcoin and Ethereum. The price action has led to the current growth of the decentralized finance (DeFi) ecosystem.
Over the past seven days, ADA has risen from $0.38 to a yearly high of over $0.65.
What is the ADA cost performance of driving?
This seven-day increase makes ADA the top performing asset among the top 50 cryptocurrencies and the top performer among the top 100 in the last 24 hours.
The recent crash trend in Cardano's price has effectively erased all the losses it accumulated earlier in the year. This represents a dramatic increase of 150% for ADA by 2023, with most of the gains occurring in the last six months.
ADA's impressive performance can be primarily linked to the overall positive trend in the crypto market. As Bitcoin continues to make new all-time highs, altcoins, including ADA, have mirrored this upward momentum.
Read more: Cardano (ADA) Price Prediction 2023/2025/2030
Santiment, a popular crypto analytics platform, has highlighted the decrease in total ADA addresses. This decline is often taken as a positive sign, as it suggests that small investors may be selling at a loss to large owners, which indicates capital gains.
However, Santiment advises caution. Data analytics platform Cardano has revealed that it is experiencing its highest social dominance days this year.
This observation suggests that investors may be overly optimistic, which can lead to fear of missing out (FOMO) in the market.
Cardano DeFi grows to all-time highs
The recent increase in ADA prices has fueled a resurgence in Cardano's decentralized finance (DeFi) space, reaching a new all-time high of nearly $420 million.
Cardano's strong DeFi ecosystem is evident in the growth of its top 10 protocols. Data from DeFillama shows that these protocols have seen significant double-digit growth over the past month. Notably, Indigo is the first DeFi protocol to exceed $100 million in total value locked (TVL) on the network.
Read More: 10 Best Cryptocurrencies to Invest in December 2023
The Cardano network has seen significant increases in key metrics such as payments, transaction volume, and active addresses.
For example, decentralized exchanges on Cardano recorded more than $14.87 million worth of transactions in the last 24 hours. This metric grew by 193% in a week to reach $62 million.
Disclaimer
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