- Cardano price has made a mild recovery in the past few months.
- Cardano’s DeFi platform has a total value locked of $97 million.
Cardano price has been moving sideways in the past few days as concerns about the network emerge. ADA, the platform’s native token, was trading at $0.5327, which was slightly below this month’s high of $0.5572. This price is about 32% above the lowest level this year, meaning that it has lagged other cryptocurrencies like Ethereum Classic and Solana.
Cardano is lagging
Cardano is one of the most popular layer 1 projects in the blockchain industry. It is a platform that was developed by Charles Hoskinson, an Ethereum co-founder, to help developers build quality decentralized applications (dApps).
After years of development, Cardano gained smart contract features in 2021.These features made it possible for developers to build quality Web3 applications in its network. Many developers have started building projects in its ecosystem.
However, a quick examination shows that the platform has lagged other similar layer 1 and layer 2 networks. For example, according to DeFi Llama, Cardano has a total value locked (TVL) of about $97 million, which was lower than its all-time high of over $300 million.
Learn more about how to buy Cardano.
MinSwap, a DEX, is the biggest DeFi app in Cardano with a TVL of over $50.98 million, giving it dominance of 52%. It is followed by WingRiders, which has a TVL of over $20.432 million, and SundaeSwap which has a TVL of $19.9 million. Lending Pond has a TVL of more than $1.9 million,
Cardano’s DeFi ecosystem is significantly smaller than that of other projects like Mixin, Fantom, DeFiChain, and Arbitrum among others. Still, Ada has a market cap of over $18 billion.
This is a sign that the coin is substantially overvalued. Besides, Cardano does not have a market share in other industries like the metaverse and non-fungible tokens (NFTs).
Cardano price prediction
On the 4H chart, we see that ADA price has been in a slow upward trend in the past few weeks. In this period, it has formed an ascending triangle pattern that is shown in blue. This pattern is nearing its confluence.
In price action analysis, an ascending triangle pattern is usually a bullish sign. The coin remains above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. Therefore, Cardano will likely have a bullish breakout in the coming days. If this happens, the next reference level to watch will be at $0.6165, which was the highest point on June 11.
