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Cardano Could Shine on DeFi this Year: Analysts

Cardano Could Shine on DeFi this Year: Analysts

Decentralized Finance (DeFi) has never really been the strong suit of Cardano (ADA), especially as the network only recently added this feature. However, analysts predict things could change for the network in 2023.

According to data from DeFiLlama, the TVL on Cardano hovers around $50 million, a fraction of its all-time high of $350 million recorded in 2022. That said, considering the relatively new state of DeFi on the network, many have described these numbers as impressive and surprising.

Source: DeFiLlama

2023 to See More DeFi Driving Developments

Crypto analysts and Cardano enthusiasts believe that the new year will see several major DeFi-leaning events occur for Cardano. For one, they say that the series of algorithmic stablecoins released by Cardano this year will yield massive gains for the network, given the convenience, these projects bring to the DeFi space.

Also, analysts believe Cardano’s TVL could reach and surpass its 2022 high of $350 million, provided the broader crypto market recovers from the crypto winter. Analysts believe that the current amount of funds locked on the network would not be able to take the ecosystem to the desired level and that inflows from the DeFi sector would be one of the best ways to introduce new capital.

Cardano Falls Into “Securities” Category

In other news, Gene Hoffman, the CCO of blockchain company Chia Coin, recently shared his opinion on some of the confusion surrounding the categorization of cryptocurrencies. According to Hoffman, Bitcoin, Litecoin, and Dogecoin are not securities, while Cardano, Avalanche, Ether, Ripple, and Solana are all securities.

Source: Twitter

Finally, WhaleStats reported that BNB whales have begun accumulating ADA again. So far in 2023, ADA has been trading at the top of the list based on trading volumes.

ADA Technical Analysis

Cardano appears to have rebounded from its two-year low of $0.239, which was reached on December 30 following a four-week plunge. At press time, ADA currently trades at $0.268—a 12% jump from its December 30 low.

ADA/USD Daily Chart on TradingView

With the recent movement, it appears that cryptocurrency is reversing its bearish trend. A return to the $0.300 mark could signal a strong comeback for the cryptocurrency. January seems to be aligning well for Cardano.

ADA Statistics Data

ADA Current Price: $0.267

ADA Market Cap: $9.24B

ADA Circulating Supply: 34.5B

ADA Total Supply: 35.3B

ADA Market Ranking: #9

Feeling confident? Trade your idea on ADA now

Disclaimer

This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.

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