ADA TVL shrinks, development activity surges, as underground work continues

Deposits into chains under Cardano decreased as of 21 April.
As the project prepares new upgrades, so did interaction soar.

Over the past few months, Cardano’s [ADA] Total Value Locked (TVL) has seen a notable rise. However, the last 24 hours to one week has been the opposite of the year-long recovery.

According to DeFiLlama, the 24-hour 3.81%% decrease was on the verge of neutralizing all the liquid input of the last 30 days.

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Bleak and sparkling in one thought

When the TVL decreases, it means that investors are slowing the rate of smart contract deposits into several chains under a DeFi protocol. At press time, the decrease had translated to a fall beneath $170 million.

Source: DeFiLlama

But on the bright side, it seemed that the Cardano team had been working on a number of functionalities on the blockchain. This was because on-chain data from Santiment showed that the development activity had heightened to 84.14.

In this case, it can be inferred that developers had been contributing immensely to the Cardano network. And also, this might be surprising as the project has found it hard to be excluded in the top five of this metric. Although this didn’t result in a favorable hike for ADA, which was trading at $0.4.

Source: Santiment

Furthermore, its co-founder Ken Kodama shared some updates regarding what was going on underground on 21 April.

#Voltaire and CIP-1694 are a couple of the biggest topics in #Cardano these. I wanted to share these and a few other things trending in Cardano over the past couple of months. 🧵 ⬇️

— Ken Kodama (@Emurgo_Ken) April 21, 2023

In the seven-tweet thread, Kodama highlighted the project’s successes in TVL, attracting users, and the mission to improve connectivity to nodes.

Although he admitted that there was still more to be done with respect to stablecoin, he stood firm on his opinion that Cardano was building a faster alternative to traditional processors.

Mission ready to be accomplished

Cardano has had some minor enhancements since the Vasil upgrade. And from the co-founder’s communique, it seems more upgrades may roll out on the blockchain.

In terms of active addresses, Cardano had experienced a hike, based on Santiment’s data. As of this writing, the 24-hour active addresses had increased to 97,400.

An increase in this part means that there was tremendously high speculation around the token. Therefore, interaction has increased as several addresses were participating in transactions on the network.

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As a result of the renewed synergy, the one-day circulation also increased. At press time, the number of ADA tokens circulating in the crypto ecosystem reached 840.69 million. Circulation here measures the number of unique tokens that have participated in transactions within a given period.

Source: Santiment

Thus, this spike agreed with the notion that crowd relations with ADA had improved. But like other cryptocurrencies in the top 10, ADA’s value had decreased by 3.71% in the last 24 hours.