Cardano Price Predictions as Blockchain Total Value Locked Figure Hits All-Time High – ADA Adoption on the Rise?

The ADA-denominated value of cryptocurrency locked in smart contracts on the Cardano blockchain recently hit an all-time high of 341 million ADA, according to data presented by DeFi Llama. ADA is the token that powers Cardano’s high-performance smart-contract-enabled blockchain, considered a rival to the Ethereum blockchain.

The ecosystem received a boost earlier this year with the launch of the over-collateralized algorithmic stablecoin Djed, which opened up new opportunities for yield farming in the Cardano DeFi ecosystem. Djed’s outstanding supply is already around 2.1 million, while the protocol has a reserve ratio of 471%, according to the project’s website.

When tokens engaged in staking, Pool2 protocols, borrowing, liquid staking, and acquiring are factored in, Cardano’s “trade value locked” (TVL) ADA token count rises to more than 387 million worth over $120 million at current market price. However, that remains a bit below its all-time high from early 2022.

USD-denominated TVL is still well below 2022 highs

Despite the recent increase in the ADA-denominated value of Cardano’s TVL, a significant decline in the price of USD-denominated ADA over the past few weeks means that USD-denominated TVL on the Cardano blockchain remains well below its highs from early 2022. The highest Cardano TVL ever was over $430 million about 12 months ago.

At the time, Cardano’s price was closer to $1.0 per token. At the time of writing, ADA/USD is changing hands just above $0.31, down about 90% from its all-time highs and down 25% since hitting it. found strong resistance in the $0.42 area in early February.

The aggressive fall in cryptocurrency over the past few weeks comes amid broader crypto market weakness due to US dollar strength, US yields and equity weakness as traders price in more hawkish Fed tightening outlook for the year. Crypto-specific concerns are also hitting the market, such as the recent fall of the crypto-enabled Silvergate Bank and ongoing concerns about a regulatory crackdown in the United States.

What’s next for Cardano (ADA)?

Cardano’s decline this week means the cryptocurrency has fallen below all of its major moving averages. Additionally, the cryptocurrency now appears to be in a downtrend that dates back to June 2022. ADA/USD’s failure to decisively break above its 200-day moving average last month is another sign that ‘there wasn’t enough momentum for a significant positive move in the near-term price outlook.

Technically speaking, the outlook for the cryptocurrency is not good in the near term, with a pullback below $0.30 looking very likely. This would open the door for a return to late 2022 lows in the $0.24 area, a further 24% drop from current levels. However, given that the 14-day Relative Strength Index (RSI) is approaching oversold territory, it is unlikely to be lower in a straight line as it has been for the past few weeks.

Cardano (ADA) Alternatives to Consider

Cardano’s short-term outlook looks weak, with significant risk of further near-term losses. Investors looking for better coins in the short term may want to diversify their holdings with presales tokens that have great risk-reward – indeed, while presales are risky (like all cryptos), crypto investors who have historically had the best returns are those that entered a pre-sale early. In the list below, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the Cryptonews Industry Talk team.

The list is updated weekly with new altcoins and ICO projects.

^{Disclaimer: The Industry Talk section features information from crypto industry players and is not part of the editorial content of Cryptonews.com.}