In this situation, it is crucial for the community to analyse the strengths and weaknesses of protocols like Cardano (ADA), which the US Securities and Exchange Commission (SEC) is targeting. On the basis of this supposition, famous Cardano supporter Dan Gambardello has given a lot of fascinating data to demonstrate how promising the blockchain protocol’s future is.
Gambardello pointed out that the protocol’s total value locked (TVL), a key sign of DeFi expansion, has maintained its upward trend despite declining prices, adverse attitude, and FUD propagating that ADA is doomed. He pointed out that the TVL has increased to 600 million ADA, or more than $120 million in US dollars.
As TVL expands, trust also does so, and according to Gambardello, this is only the beginning. He made a comparison between Cardano’s current position and Ethereum’s (ETH) before to the 2020 price halving. At the time, Ethereum TVL was estimated to be $400 million, but less than two years later, in the following bull market, that number ballooned to nearly $129 billion.
Along with this parabolic growth tendency, the coin’s market valuation increased by 22 times, from $25 billion to $568 billion.
Thesis for Cardano’s growth
Although Charles Hoskinson’s blockchain was late to the market, according to Gambardello’s thesis supporting its growth prospects, it was designed to “be a more secure, scalable, decentralised, and economical blockchain than Ethereum.”
The items Cardano is introducing today reflect the evaluation Gambardello is giving Cardano. The Marlowe smart contract protocol and the Hydra Head scalability tool have both been introduced by Cardano on the mainnet, in addition to its flagship Lace Wallet, which is still one of the newest sensations in the Web3.0 world.
Aside from the present diversion caused by the SEC’s designation of ADA as a security, the digital currency is developing and setting itself up for a bright future.
