• Popular asset tracking platform says Cardano’s Total Value Locked is “set for exponential growth.”
  • TapTools cites innovation, community support, and strategic partnerships as key drivers to the expected growth.
  • Cardano’s Ouroboros consensus protocol is a significant step forward for the industry.

In an April 7 announcement, the team behind popular asset tracking platform TapTools explained why Cardano’s Total Value Locked (TVL) is “set for exponential growth.”

Cardano is a top contender in the DeFi space

The comprehensive asset-tracking platform attributed the expected upswing to innovation, community support, and strategic partnerships, underscoring that these are their opinions and do not guarantee future outcomes. 

In their opinion, Cardano’s unique Proof of Stake (PoS) model makes it a leading contender in the decentralized finance (DeFi) space.

Source: DefiLlama

Accordingly, as DeFi adoption continues to increase, the network’s secure, scalable, and eco-friendly solution could attract more users and projects to the ecosystem. Further, TapTools suggested that introducing smart contracts on Cardano has allowed developers to build powerful decentralized applications (dApps) on the platform. As such, with more dApps launching on the platform, the TVL could also grow in tandem.

Moreover, Cardano is focused on financial inclusivity and real-world applications, especially where emerging markets are concerned. In this respect, TapTools points out that the approach presents a huge potential as more users are drawn to the ecosystem, thereby contributing to Cardano’s TVL.

Noteworthy, strategic partnerships and collaborations have played a crucial role in the network’s growth thus far. Cardano has collaborated with key players in the industry, which explains why TapTools supposes that these partnerships could be an enabler for increased adoption and growth in the ADA TVL.

In closing, the asset tracker underscored the importance of Cardano’s thriving community, comprising developers, enthusiasts, and investors. In their opinion, such kind of support and contributions from community members could play an enabling role in boosting Cardano’s TVL higher.

Cardano’s innovative consensus protocol, Ouroboros

In a March 25 episode, Tap Tools explained its admiration for Cardano’s innovative PoS consensus protocol dubbed Ouroboros, saying:

It [Ouroboros] is a significant step forward for the industry.

Tap tools also narrated key reasons why Cardano’s Ouroboros is desirable, supporting each point with how it benefited the community.

According to the Cardano Foundation, Ouroboros is a groundbreaking PoS protocol enhancing the security of Proof-of-Work (PoW) systems while at the same time reducing energy consumption by a significant margin.

Being the first provably safe PoS protocol founded upon comprehensive research, Ouroboros:

Uniquely merges cryptography, combinatorics, mathematical game theory, behavioral psychology, and economic philosophy to ensure the integrity, longevity, and performance of the distributed networks that rely on it, with Cardano being the first.

The Cardano Foundation also explains that Ouroboros is designed for limitless scalability and sustainability, facilitating the creation of distributed, permissionless networks capable of supporting new markets in an energy-conserving manner.  

With statistically verifiable security against exploiters, an incentive mechanism where network participants are rewarded, and a decentralized network control spread across stake pools, the PoS protocol delivers a safe and sustainable solution for blockchain networks such as Cardano. This, according to TapTools, boasts up to 4,000,000 times the energy efficiency of Bitcoin (BTC).


Cardano price ready for a breakout

At the time of writing, Cardano (ADA) is trading at $0.38, after gaining 0.2% in the last 24 hours. 

ADA.USDT 1-day chart

The altcoin is up 2.1% in the last week and 16.2 in the last month, according to data on Coingecko. 

Interestingly, the token’s 24-hour volume on decentralized exchanges is up almost 80% to $6.18 million as of the time of writing.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Crypto market cowers with sell signals after FOMC minutes

Crypto market cowers with sell signals after FOMC minutes

Bitcoin price could make a 5% trip south to the $48,000 psychological level. Ethereum price likely to revisit $2,770, a 5% fall with a sell signal already in play. Ripple price eyes a 7% fall amid growing overhead pressure.

More Cryptocurrencies News

Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

Worldcoin price is down 23% since the Monday peak of $7.9960. WLD could extend the fall 9% to the key Fibonacci retracement level, 61.8% at $5.7330. Invalidation of the bearish thesis will occur if the AI token clears the range high to create a new local top.

More Worldcoin News

Bitcoin price could drop 7%, but MicroStrategy nearly merits S&P 500 inclusion

Bitcoin price could drop 7%, but MicroStrategy nearly merits S&P 500 inclusion

Bitcoin price has managed to climb a commendable distance since October, with the move benefitting MicroStrategy the most, among other investors. The company, having demonstrated strong support for BTC through successive purchases, could soon merit S&P 500 inclusion as it steadily checks the boxes for listing criteria. 

More Bitcoin News

SingularityNET: 15% drop likely for AGIX as multiple on-chain metrics flash bearish

SingularityNET: 15% drop likely for AGIX as multiple on-chain metrics flash bearish

SingularityNET price has dropped almost 12% since rejection from the peak of the market range at the $0.6000 psychological level. AGIX could extend the fall nearly 15% before providing a buying opportunity for late and sidelined investors. A higher high above $0.5999 would invalidate the bearish thesis.

More SingularityNET News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis