Cardano DeFi Hits Record 417 Million ADA Locked
Cardano’s decentralized finance (DeFi) ecosystem reached a new milestone this month, with the total value locked (TVL) hitting an all-time high of 417.7 million ADA on May 14, according to data from DeFiLlama.
Although TVL has slightly declined to 409.86 million ADA as of press time, the increase represents the strongest period of growth for Cardano’s DeFi sector since its inception.
In US dollar terms, Cardano’s DeFi TVL has more than tripled since the start of the year, rising from roughly $50 million to $151 million. However, this remains below the ecosystem’s historical peak of over $300 million.
Minswap and Indigo Lead the Ecosystem
Minswap remains the largest protocol on Cardano, holding $55.7 million in locked assets. The decentralized exchange (DEX) has been instrumental in driving liquidity across the ecosystem.
Following closely is Indigo, a decentralized synthetic asset protocol with $29.67 million in TVL. Both protocols have shown strong growth over the past week, with Minswap’s TVL up 10.55% and Indigo’s up 8.35%.
WingRiders, another Cardano-based DEX, ranks third with $15.61 million locked. Cardano’s native over-collateralized stablecoin Djed accounts for $13.75 million in TVL, while lending protocol Liqwid rounds out the top five with $11.97 million.
Other notable gainers include Aada and FluidTokens, both of which recorded significant week-over-week increases.
Smart Contracts Expand Across Cardano
Cardano’s on-chain development continues to strengthen, with over 1,000 new Plutus V1 smart contracts deployed in 2023, according to LookerStudio.
This growth reflects a steady increase in developer activity, though the number still trails Ethereum’s much larger base, where more than 100,000 contracts are deployed weekly.
Industry analysts believe Ethereum’s high gas fees and recent network congestion could drive some developers and users toward more cost-efficient alternatives like Cardano.
A Strengthening Position in the DeFi Landscape
As Cardano’s DeFi sector matures, its consistent growth in both total value locked and smart contract deployment underscores increasing confidence among developers and investors.
If the ecosystem continues this trajectory, Cardano could position itself as one of the leading alternatives to Ethereum’s DeFi dominance, supported by its lower transaction costs and expanding protocol base.
