Cardano’s Remarkable 150% Growth in 2023: What’s Behind ADA Price Rise?

Cardano’s blockchain native ADA token rose by around 60% during the past week, outperforming other top cryptocurrencies like Bitcoin and Ethereum. Its price performance has also driven the current growth of its decentralized finance (DeFi) ecosystem.

Over the past seven days, ADA skyrocketed from $0.38 to a yearly high of more than $0.65.

What Is Driving ADA Price Performance?

This seven-day surge positions ADA as the top-performing asset among the top 50 cryptocurrencies and the leading performer in the past 24 hours among the top 100.

The recent bullish trend in Cardano’s price has effectively erased all the losses it accumulated earlier in the year. This represents a staggering 150% increase in value for ADA in 2023, with most gains occurring in the past six months.

Cardano ADA Price Performance. Source: TradingView

ADA’s impressive performance can be largely attributed to the overall positive trend in the crypto market. As Bitcoin continues to achieve new all-time highs, altcoins, including ADA, have mirrored this upward momentum.

Santiment, a notable crypto analytics platform, highlighted a decrease in the total number of ADA addresses. This decline is often considered a positive sign as it suggests that smaller investors might be selling at a loss to larger holders, indicating capitulation.

Nevertheless, Santiment advised exercising caution. The data analytics platform noted that Cardano is experiencing its highest social dominance days in the current year.

Cardano Social Dominance. Source: Santiment

This observation implies that investors might have excessive enthusiasm, potentially leading to fear of missing out (FOMO) in the market.

Cardano DeFi Grows to All-Time Highs

The recent surge in ADA prices has spurred a resurgence in Cardano’s decentralized finance (DeFi) space, reaching a new all-time high of approximately $420 million.

Cardano’s robust DeFi ecosystem is evident in the growth of its top 10 protocols. DeFiLlama data shows these protocols have experienced substantial double-digit growth over the past month. Notably, Indigo is the first DeFi protocol on the network to surpass a total value locked (TVL) of $100 million.

Cardano Top 10 DeFi Protocols. Source: DeFiLlama

Cardano’s network has also witnessed notable increases across key metrics such as fees, trading volume, and active addresses.

For instance, decentralized exchanges on Cardano recorded a trading volume exceeding $14.87 million in the last 24 hours. This metric has soared by 193% over the week to reach $62 million at the time of reporting, showcasing the platform’s growing traction.

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