Cardano (ADA) has been on a downhill roll, losing 12.05% in the last seven days and nearly 8% in the last 24-hours. Its total value locked (TVL) continues to decline due to decreased investor interest in dApps and a correction in the broad crypto market.
However, Cardano is a headstrong fighter. It continues to fight for a fair share of the decentralized finance (DeFi) market following the successful upgrade of the Alonzo Hard Fork in September 2021. Cardano, as per research, lost $205 million in TVL since reaching an all-time high total value locked of $326 million on March 24, 2022. But on May 26, it fell to $120.86 million.
Cardano is a proof-of-stake blockchain network. It provides unique security and sustainability to systems, societies, and decentralized applications. The Cardano Foundation, Input-Output Hong Kong (IOHK), and Emurgo help the project stay in line with its purpose.
Analysts attribute Cardano’s TVL plunge to a drop in liquidity of protocols housed in its ecosystem. Other decentralized exchanges are facing declines too. MiniSwap fell more than 38% in the last month, while WingRiders – a decentralized trading platform – dipped by more than 50% in TVL in the same period. SundaeSwap and MeowSwapFi lost more than 41% and 56% respectively of their TVLs.
But Cardano has lost its place in line to Oasis, Harmony and Moonriver, Celo, Bitcoin, Osmosis, Elrondo, and Heco – after losing more than 65% of its value locked. However, Cardano still retains the lion’s share in TVL over Gnosis, Fusion, Eos, Terra, Astar, and Algorand.