Cardano (ADA) DeFi TVL Spikes 13% in Q4 2024, Liqwid Finance Emerges as a Key Growth Driver

Cardano's decentralized finance (DeFi) environment has increased significantly, with the total value locked (TVL) expanding by 13%.

Cardano (ADA) experienced significant growth in the decentralized finance (DeFi) sector during Q4 2024, with a 13% surge in total value locked (TVL), according to data from DeFiLlama. This growth was driven by several key factors, including major protocol improvements and a steady rise in the adoption of decentralized applications (dApps).

Recent network upgrades, such as the Ouroboros Peras protocol, had a substantial impact on Cardano’s expansion. These upgrades focused on enhancing blockchain governance and scalability, which led to faster transaction speeds, reduced network congestion, and increased engagement in DeFi activities.

Another key development was the Chang Hard Fork, which further enhanced the ecosystem's functionality, making it more attractive for DeFi projects to launch on the platform.

Cardano's growth was also evident in other aspects, such as a surge in ADA's price, which reached $0.84 in Q4 2024. This rally drove its market capitalization up 127% quarter-over-quarter (QoQ) to $30.3 billion, despite a 2.2% decline in circulating supply, as shown by data from Messari.

This surge in market cap highlights the growing demand, increased liquidity, and a stronger presence of ADA within the broader crypto market, solidifying its position as a leading blockchain asset.

Among Cardano's DeFi protocols, Liqwid Finance experienced substantial growth in terms of TVL and user engagement. This decentralized protocol offers competitive rates for lending and borrowing, contributing significantly to Cardano's growing DeFi TVL.

Furthermore, the emergence of stablecoins played a crucial role in shaping Cardano's DeFi landscape. The release and utilization of more tokens across several DeFi platforms led to the growth of Cardano's stablecoin market.

People have long regarded the Cardano network as a stable and attractive alternative to other blockchain ecosystems, and this shift further cements its stability and appeal.

However, not all sectors experienced the same trajectory even as Cardano showed clear gains in the DeFi market. Reports on the network's non-fungible token (NFT) market yielded mixed results.

While the overall transaction volume increased, several projects and NFT collectors faced challenges in maintaining consistent growth.

On the other hand, Cardano's stablecoin market cap grew 66% from one quarter to the next. This indicates increasing interest in assets like iUSD and DJED.

But there were mixed signs from NFT activity. The average daily trading volume of NFTs in USD went up 86% to $78,900 as the value of the ADA went up. However, the number of NFT sales and transactions went down slightly.

Overall, Cardano's 13% rise in DeFi TVL and soaring market cap figures illustrate the growing impact of the blockchain on decentralized finance. As fresh updates continue rolling out and protocols like Liqwid Finance gain steam, the long-term prospects of the network appear bright.