The remarkable surge of Cardano’s [ADA] value in November was underpinned by robust fundamentals and trust, as the Total Value Locked (TVL) hit an all-time high of $713 million.
This marked a significant rebound from the previous cycle’s drop to nearly $500 million.
Impressive Surge in Cardano TVL
For those not familiar, TVL represents the total amount of assets locked in a blockchain network, particularly within the DeFi protocols operating on the Cardano network. An increase in TVL signifies a greater level of investor confidence.
As per data from DeFiLlama, the primary drivers of Cardano’s TVL were two lending platforms, Liqwid and Indigo, in addition to the decentralized exchange (DEX) Minswap, collectively accounting for over 50% of the TVL, amounting to $430 million at present.
The network’s expansion was evident as the trading volume on DEX (decentralized exchange) reached yearly peaks.
At the start of November, the Cardano DEX trading volume (depicted in orange) stood at a modest $1.9 million, which surged to $31.5 million by the latest data, representing a remarkable 17-fold growth within a month.
The surge in DEX trading volume translated into heightened user engagement, which has historically led to a bullish price action in ADA over the past month.
Noteworthy is the spike in the number of users from 30,000 in early November to almost 90,000 presently, marking a 100% surge. Concurrently, ADA saw an impressive 272% price surge during the same period, hitting a yearly high of $1.3.
Price Movement of ADA
Hence, the escalating DEX volume and general network expansion could potentially fuel ADA’s potential to retest its 2021 cycle peak of $3 if the current trend persists in the coming weeks or months.
The likelihood of ADA revisiting the 2021 highs on the price charts will largely depend on it maintaining a position above $1 and a well-defined range high around $1.5 established in the previous cycle.
The recent surge in prices pushed the altcoin into the $1-$1.5 range formed in 2021, where ADA underwent consolidation for three months before the subsequent breakout to $3.
If history repeats itself, ADA’s price may fluctuate between $1 and $1.5 in the near future.
To sum up, the recent price surge in ADA was not merely a result of market hype but was strongly supported by solid fundamentals.