Cardano: Strong Fundamentals Point to Potential ADA Price Spike
According to Dan Gambardello, the founder of Crypto Capital Venture, Cardano's ADA may experience a substantial recovery.
Gambardello believes that the inflow of DeFi into the Cardano ecosystem is a key indicator of this potential growth.
— Dan Gambardello (@cryptorecruitr) April 5, 2023
Interest in Cardano DeFi has increased significantly, especially since the Djed stablecoin went live. Currently, the TVL of the Cardano network is $139.81 million, according to DefiLlama, and this value increases to over $150 million when staking is also taken into account.
This overcollateralized decentralized stablecoin is backed by other tokens, which require collateral values of between 400% and 800% before they can be issued to users.
Despite ADA falling 3.41% during the day, Gambardello expects the explosive growth in Cardano’s TVL to continue throughout 2023. The Cardano network has recently undergone the Valentine upgrade, which has enhanced cross-chain functionality for DeFi apps built on the Cardano blockchain.
Additionally, the network is preparing to introduce a new feature enabling users to access Ethereum dApps directly from ADA wallets. The robust fundamentals of Cardano could potentially restrain ADA’s downside risks and motivate traders to reinvest in the coin in the upcoming weeks.
Furthermore, with ongoing fiscal momentum in the crypto industry and no signs of it slowing down amid the U.S. banking system turmoil, Bitcoin continues to face substantial hurdles around the $30,000 level.
However, if Bitcoin breaches this level, it could encourage altcoins such as ADA and potentially cause their prices to soar.