Cardano's native token, ADA, is no exception. The cryptocurrency has seen unexpected growth in its network value in recent months. Serving as the platform behind the widely popular Defi ecosystem, ADA has become increasingly popular among traders and developers alike.

Dan Gambardello, the founder of Crypto Capital Venture, recently highlighted the potential of Cardano's upcoming price rise, citing the dramatic increase in Cardano's locked tokens, or TVL, as the leading indicator. As the total value of ADA deposited in decentralized finance applications keeps rising, there is reason to believe that the asset will appreciate in the long run.

In the last couple of months, the TVL of Cardano soared to a new high of 420.26 million ADA, denominated in bucks the number climbs to nearly $144 million. Given that the asset has a market capitalization of just over $1 billion, this hints at upside potential. Furthermore, the total value locked on Cardano is even higher when staking is factored into the equation, coming in at roughly $155 million.

Analysts suggest on-chain metrics like the TVL to be taken into account when assessing the relative value of a cryptocurrency. When a token's TVL is far higher than its market capitalization, it may indicate that the asset is undervalued.

A surge in interest in DeFi protocols running on Cardano could be the proverbial spark needed to propel ADA's price higher, according to Gambardello. For now, however, the asset remains volatile as Bitcoin and the other major cryptocurrencies post losses in the market.



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